AUD/USD Upward Channel Supports Buying – A Quick Signal Update!
Arslan Butt • 2 min read
The AUD/USD closed at 0.74420, after placing a high of 0.74848, and a low of 0.74043. After falling for three consecutive days, the AUD/USD pair rose, on Wednesday, to its highest level since June 2018. At 04:30 GMT, the Westpac Consumer Sentiment for December came in at 4.1% compared to the previous 2.5%. The AUD gathered strength after the release of data published by the Faculty of Economics and Commerce Melbourne Institute, which showed that the consumer confidence in Australia continues to strengthen in December.
Additionally, as reflected by rising global equity indexes, the upbeat market mood helped the risk-sensitive Australian dollar to continue outperforming its rivals. On Wednesday, the US Dollar Index (DXY) was up by 0.2%, at 91.15, weighing on the AUD/USD pair, which started to lose its daily gains. From the US side, at 20:00 GMT, the Final Wholesale Inventories figures for October were released, showing a rise to 1.1%, against the estimated 0.9%, which put pressure on the greenback. The JOLTS Job Openings for October also surged, reaching 6.65M against the anticipated 6.30M, supporting the US dollar and capping any further gains in AUD/USD pair.
Meanwhile, the gains for the AUD/USD pair were also lost after the latest news from Great Britain, which weighed on risk sentiment. The Aussie, which is a risk-sensitive currency, suffered after Britain’s top medical adviser warned that people with significant allergies should not be given the coronavirus vaccine from Pfizer and BioNtech, as they are likely to suffer an adverse reaction. This warning came in after two people were reported to have had severe side effects after receiving this coronavirus vaccine.
Technically, the AUD/USD pair is bullish at the 0.7487 level, facing immediate resistance at 0.7485. On the higher side, a bullish crossover at this level could extend the buying trend until the next resistance area of 0.7525. On the 4-hour timeframe, the AUD/USD has formed an upward channel that also supports the buying trend, thus we have opened a buying trade in the AUD/USD pair today. Good luck!