AUD/USD jumps to one-week highs near 0.6950 as Wall Street soars

• AUD/USD surges amid risk appetite, DXY tumbles to the lowest level in a week.  
• Optimism about a COVID-19 vaccine and US data fuels optimism.

The AUD/USD pair rose from 0.6885 and spiked at 0.6943, the highest level since June 24. It then pulled back and it is hovering around 0.6910/15, up for the day and above the 0.6890 relevant support.

A decline of the US dollar across the board triggered the rally in AUD/USD. The greenback weakened as equity prices in Wall Street jumped to fresh daily highs on reports about a coronavirus vaccine and better-than-expected US data.

The ISM Manufacturing index came in at 52.6 in June, rising 9.5 points. Earlier the ADP report showed numbers slightly below expectations but the revision to May’s numbers were extremely positive. Later on Wednesday, the Federal Reserve will release the minutes of its latest meeting.

The positive tone around equity prices eased after news reports on COVID cases in the US. The AUD/USD pulled back and the US Dollar Index (DXY) moved modestly off lows. Risk flows will likely continue to be the key driver for the pair.

Technical levels