- AUD / USD returns above 0.6900 after retreating from five-month highs at 0.6998.
- The Australian dollar rallies to hopes for an economic recovery and a weaker US dollar.
- The next AUD / USD levels to watch are 0.6939 and 0.7032 – Credit Suisse.
The Australian dollar extended its rally, surpassing the level of 0.6900 to reach session highs at 0.69983, its highest price since early January. The Aussie has been helped by positive market sentiment to jump about 5% against the safe haven dollar over the past five days.
Aussie rallies for hopes of economic recovery
The risk-sensitive AUD / USD was boosted by investor confidence in a V-shaped recovery, with Australia probably being one of the first major economies to recover from the closure of COVID-19.
The USD remains vulnerable in a risky market, losing ground against its main peers. Better-than-expected ADP employment numbers in the United States and ISM PMI non-manufacturing activity have heightened investor appetite for risk, with massive protests against racism spreading to the United States increasing pressure from sale on the green ticket.
AUD / USD: 0.6939 and 0.7032, Key Levels to Watch Now – Credit Suisse
Confirmation above the 200-day average at 0.6664 / 6789 has turned the pair’s short-term bias upwards, according to the Credit Suisse team of FX analysts, shifting attention to 0, 6939 and 0.7032, “We see resistance to potential downtrend from 2013 currently at 0.6939, before the 2020 peak at 0.7032, where we expect to see fresh sales early. A break above it, however, would reinforce a broader shift in the uptrend. ”