AUD/USD resumes rally on consumer confidence

Aussie back to winning ways

The Australian dollar is in positive territory on Tuesday. AUD/USD is currently trading at 0.7236, up 0.30% on the day.

After a listless week, AUD/USD has flexed some muscle and has gained close to 1.0% since the weekend. The Aussie has not sustained a losing week since mid-June, having gained 4.6% during this time. Despite its status as a risk currency, investors have shown a willingness to forego the safety of the US dollar during the Covid-19 crisis in favor of the Australian dollar.

AUD/USD received a boost on Tuesday, as the ANZ-Roy Morgan Consumer Sentiment Index came in at 88.6, up from 85.5 beforehand. This was the first time that the index has shown a gain since mid-June. Earlier on Tuesday, the Reserve Bank of Australia released the minutes of its most recent policy meeting. Policymakers said that the bank would continue with its accommodative policy as long as needed, confirming the bank’s dovish bias. Despite the bank’s stance, the Aussie remains in positive territory.

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AUD/USD Technical

AUD/USD posted gains in the Asian session and has posted further gains in European trade

  • 0.7179 is the next support level. This is followed by support at 0.7143
  • AUD/USD broke above resistance at 0.7239 in the Asian session. The next resistance line is 0.7263
  • AUD/USD closed above the 10-day MA on Monday, for the first time since August 6. This is a bullish sign for the pair

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.