AUD/USD, AU Vaccine Program, Iron Ore, Copper– Speaking Factors
- Australia’s Covid vaccination program formally kicks off this week
- Rising iron ore and copper costs are bolstering AUD sentiment
- AUD/USD eyes 0.7900 psychological degree as costs push larger
Really helpful by Thomas Westwater
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The Australian Covid-19 vaccination program formally began this week. Australian Prime Minister Scott Morrison, together with a gaggle of aged care residents, acquired a dose of Pfizer’s vaccine. Prime Minister Morrison described it as a ‘historic day’ for the nation. The preliminary part is ready to ship 1000’s of vaccine doses to healthcare staff and different precedence sufferers within the coming weeks.
Aussie-Greenback sentiment could obtain a lift if the vaccination program’s preliminary rollout is easily administered. AUD/USD gained almost 1.50% final week as rising commodity costs bolstered the pair’s outlook. Iron ore – one in all Australia’s major exports – is buying and selling close to 10-year highs after benchmark future costs surged late final week as Chinese language markets reopened following the Lunar New Yr vacation break.
Copper costs additionally rose final week and lots of buyers are starting to embrace a potential commodity supercycle. If that situation performs out, such because the supercycle seen previous to the 2008 monetary disaster, the Australian Greenback is a main candidate to benefit from the spoils of rising commodity costs. Australia exported almost A$120 billion of iron in 2020 and 2021 could also be on monitor to interrupt that determine as China’s financial progress fuels demand for the metallic ore.
AUD/USD, Iron Ore, Copper – Day by day Chart
Australian Greenback Technical Outlook
AUD/USD surged above 0.7850 final week and momentum seems poised to proceed pulling costs larger. The Relative Power Index (RSI) has trended larger together with worth motion however stays under the 70 overbought degree. MACD can also be bullishly postured with a rising divergence to the upside. The 0.7900 psychological worth degree will seemingly come into play if sentiment holds by means of this week.
AUD/USD Day by day Value Chart
Chart created with TradingView
AUD/USD TRADING RESOURCES
— Written by Thomas Westwater, Analyst for DailyFX.com
To contact Thomas, use the feedback part under or @FxWestwateron Twitter