AUD/USD nears 2021 tops at 0.7820 amid record rally in S&P 500 futures
- AUD/USD tracks the S&P 500 futures rally amid risk-on mood.
- Bulls eye 2021 highs at 0.7820 after 0.7800 taken out.
- Dovish RBA minutes ignored, as the daily chart appears constructive.
AUD/USD extends its bullish momentum into Tuesday’s Asian trading, having briefly taken out the 0.7800 barrier, in a bid to refresh one-month highs.
At the time of writing, the aussie trades at 0.7797, up 0.24% on a daily basis, rising for the second straight session.
The risk-on sentiment remains the underlying theme that benefits the higher-yielding Australian dollar while the US dollar remains on the back seat amid a record rally in the S&P 500 futures.
Markets remain hopeful that the rapid pace of covid vaccines rollout globally could aid the economic recovery while expectations of US fiscal stimulus continue to power reflation trades, driving flows into the riskier assets at the greenback’s expense.
Amid a better market mood, the bulls ignored the dovish Reserve Bank of Australia’s (RBA) February meeting’s minutes. The surge in oil and copper prices also collaborates with the upside in the resource-linked aussie.
AUD/USD: Technical outlook
AUD/USD: Daily chart
On a sustained move above the 0.7800 level, the buyers would look to recapture the horizontal trendline resistance at 0.7820. The next relevant bullish target is seen at 0.7850
The 14-day relative strength index (RSI) points north while heading towards the overbought territory, currently at 62.32, suggests more gains in the offing.
On the flipside, Monday’s low of 0.7758 could offer immediate support, below which the 21-SMA at 0.7701 could be put to test.
AUD/USD additional levels