- USD selling continues on stimulus progress and Fed dovishness.
- Dollar index at a multi-year low.
- Unemployment falls in Australia.
AUD/USD trades at the highest level since June 2018 and is trying to push past 0.7600, continuing its four-day winning streak, ahead of the European open.
The progress towards the 900 billion US dollars pandemic-aid package and the Fed’s dovish approach in tackling the inflation and employment slowdown weigh on the greenback. The dollar index has fallen to the lowest level in two-and-a-half years, pushing to break the support near the 90 level. The index is down 0.48 Percent for the day.
AUD/USD bulls also got a boost from the robust Australian employment data, which showed that the unemployment rate fell to 6.8 Percent in November and created higher-than-expected 90k jobs.
The upbeat employment numbers will ease the pressure on the central bank of Australia to turn more dovish.
Also, market participants see positive vibes between Australia and China, after the comments from the Australian Treasurer Josh Frydenberg on the trade issues between the two countries.
Hence, AUD/USD might continue its uptrend gaining support from RBA policy expectations, vaccine headlines, and US stimulus talks.
Traders will also eye the US weekly jobless claims for short-term trading opportunities.