AUD/USD: Bulls cheer Moderna’s vaccine news above 0.7300
- AUD/USD stays positive near one week high as vaccine hopes get a boost.
- Moderna conveys a higher effective rate than Pfizer, easier to distribute.
- US states tightening activity restrictions on covid resurgence, Fed’s Clarida stays optimistic.
- Comments from RBA policymakers, monetary policy meeting minutes be the key, risk catalysts remain as market drivers.
AUD/USD occupies the bulls’ radar while taking rounds to 0.7315/20 at the start of Tuesday’s Asian trading. The pair surged to the highest in one week after Moderna beats Pfizer in the coronavirus (COVID-19) vaccine race. Though, fears of a wider spread of the virus than the first wave as well as cautious sentiment ahead of the RBA’s key updates probe the optimists near the multi-day top.
Moderna’s vaccine trials boost market optimism…
Moderna’s much-awaited communication on the vaccine pleased global markets, favoring Wall Street and commodities mainly, on Monday. With a 94.5% effective rate, not to ignore good to distribute and storage capacity, the pharma company goes far beyond the Pfizer-BioNTech-led vaccine. Such developments keep traders positive even as the covid pushes US states towards the local lockdowns.
While portraying the optimism, Fed’s Vice Chair Richard Clarida recently mentioned having, “Entered fourth quarter with good momentum and vaccine news is encouraging.”
Also favoring the pair are the comments from the RBA Governor Philip Lowe that ruled out the negative interest rate, for now, as well as downbeat prints of US Empire State Manufacturing PMI for November.
On the contrary, China’s mixed figures of Retail Sales and Industrial Production for October join Beijing’s restrictions on Aussie wine to challenge the AUD/USD buyers.
Moving on, RBA Assistant Governor (Economic) Christopher Kent will be the first to cross wires ahead of the minutes of the latest monetary policy. Following that, RBA Assistant Governor (Financial Markets) Guy Debelle will cross the wires to shed more light on Lowe’s positive outlook.
Considering the lack of major data/events, risk news becomes the key to watch for the AUD/USD pair traders.
Technical analysis
Having successfully bounced off October tops, AUD/USD bulls again aim for the 0.7340/45 resistance area comprising the tops marked since the mid-September, a break of which will highlight the August 31 high near 0.7415. Meanwhile, the 0.7300 round-figure and the previous month’s peak surrounding 0.7245/40 can offer short-term support during the pair’s corrective pullback.