- AUD/USD continues the uptick from yesterday.
- Additional US fiscal stimulus hopes revived.
- The haven-linked appeal of US dollar softened after Trump’s follow-up comments.
The AUD/USD touched a two-day high during the Asian session today and was trading around 0.7155 earlier.
The resurgence in the pair was triggered by the increased hopes of another round of US fiscal stimulus. The upbeat mood based on the stimulus hopes was reflected in the equities rally, which dented the safe-haven appeal of the US dollar and put riskier currencies like the AUD in demand.
Earlier comments by Trump and he calling-off the talks with Democrats had shaken the market confidence. But, the President’s affirmative comments regarding gradual spending measures, extending support for individuals, small businesses and airlines, helped the risk-on mood to make a comeback.
The minutes of the September FOMC meeting released yesterday also indicated US economic growth depends on the fiscal stimulus from the government. The faster-than-expected economic recovery might go off-rails if a timely booster shot is missed, according to the policymakers.
The change in mood in the market helped the AUD/USD to bounce back from the weekly lows around 0.7100, touched on Wednesday. Nevertheless, analysts believe the bullish case is limited as the follow-up buying in the pair is missing at higher levels.
The US session will see the release of Initial Weekly Jobless Claims, and it will influence the AUD/USD along with broader market risk sentiments.