The pair will likely keep rising as bulls target the key resistance at 0.7300.
Bullish View
Bearish View
The AUD/USD pair continued its comeback as the risk-on sentiment returned in the market. The pair rose to 0.7210, which was the highest level since December 16th. This price was about 1.80% above the lowest level since last week.
Risk-Off Sentiment
The AUD/USD pair rose as investors embraced a relatively risk-off sentiment after the latest reports on the Omicron variant. Two reports published on Wedneday confirmed that the Omicron variant was not as severe as the Delta and the first variant of the disease. The two reports were from the United Kingdom and South Africa.
The pair rose even after the relatively positive numbers from the United States. For example, data published by the Conference Board showed that the country’s consumer confidence rose from 111.9 in November to 115.8 in December. This was the highest level in a few months even as inflation continues to rise.
The AUD/USD also rose after the US published the final reading of the third-quarter GDP. Economic data showed that the economy expanded by 2.3% in Q3. This was a better estimate than the previous estimate of 2.1%.
The US also published the relatively strong housing data. Existing home sales rose from 6.34 million in October to more than 6.46 million. The number has been in an upward trend this year as interest rates remain low. Later today, the US will publish the latest new home sales data.
The other numbers that will move the AUD/USD pair today will be the latest new home sales data, initial jobless claims, and durable goods data. These numbers are expected to be relatively strong. Still, the impact of the data to the AUD/USD will be relatively limited because the Fed has already hinted that it will be hawkish in the coming year.
AUD/USD Forecast
The AUD/USD pair has been in a strong bullish trend in the past few days. The pair moved above the first resistance of the standard pivot point. It also moved above the 25-day moving average. It has also moved to the upper side of the Bollinger Bands.
At the same time, oscillators have been in an upward trend. The Relative Strength Index (RSI) and the Stochastic Oscillator also rose. Therefore, the pair will likely keep rising as bulls target the key resistance at 0.7300.
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