- Aussie bulls are aiming to recapture the psychological resistance of 0.7000 amid an upbeat market mood.
- A breakout of the Rising Channel has strengthened the Australian Dollar.
- The RSI (14) has shifted into the bullish range of 60.00-80.00, which conveys that the bullish momentum has been activated.
The AUD/USD pair is inches far from recapturing the critical resistance of 0.6980 in the Asian session and is likely to extend further to near 0.7000. The Aussie asset has sensed buying interest as risk-sensitive assets like S&P500 futures are extending their gains further. Despite three consecutive bullish trading sessions, S&P500 futures are still aiming higher, which indicates that bulls are not out of steam.
The US Dollar Index (DXY) is hovering around a fresh seven-month low at 101.80 and is not expected to display any meaningful rebound move amid the risk appetite theme. A spree of inflation softening in the United States is going to force the Federal Reserve (Fed) to employ a less-hawkish tone in announcing February’s monetary policy.
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