• A combination of factors assisted AUD/USD to gain traction for the fourth consecutive session.
  • The risk-on mood benefitted the perceived riskier aussie amid a softer tone surrounding the USD.
  • Thursday’s disappointing US macro data did little to impress the USD bulls or provide any impetus.

The AUD/USD pair edged higher during the early North American session and refreshed daily tops in the last hour, with bulls making a fresh attempt to reclaim the 0.7600 mark.

The pair managed to gain some positive traction for the fourth consecutive session on Thursday and is now looking to build on this week’s solid rebound from the 0.7475 region, or six-month lows. The underlying bullish sentiment in the financial markets benefitted the perceived riskier aussie. Apart from this, a softer tone surrounding the US dollar provided an additional boost to the AUD/USD pair.

Mixed signals from Fed officials on the US inflation now seemed to act as a headwind for the greenback. In fact, Fed Chair Jerome Powell said that the price pressures should ease on their own. Separately, Atlanta Fed President Raphael Bostic and Fed Governor Michelle Bowman said that the high inflation would last longer than expected. This, in turn, kept the USD bulls on the defensive.

The USD failed to gain any respite from Thursday’s softer US macro releases. The final GDP report confirmed that the US economy expanded by a 6.4% annualized pace during the first quarter of 2021, matching the preliminary estimates. This was largely offset by the disappointing releases of Durable Goods Orders and Initial Weekly Jobless Claims and did little to provide any impetus to the USD.

Market participants now look forward to a scheduled speech by New York Fed President John Williams. This, along with the US bond yields and the broader market risk sentiment, might provide some impetus to the AUD/USD pair. It, however, remains to be seen if bulls can capitalize on the positive move or once again face rejection near the 0.7600 mark, which should now act as a key pivotal point.

Technical levels to watch