The Australian Dollar is climbing on Thursday as investors banked on reports the Omicron coronavirus variant was only mild in its effects meant its spread would only be a short-term drag on the global economy. The early morning strength puts the Aussie at its highest level since November 24 and in a strong position to continue the move after the Christmas holiday. Although some traders remain cautious due to the thinly-traded holiday market.
At 08:56 GMT, the AUD/USD is trading .7243, up 0.0020 or +0.28%. On Wednesday, the Invesco CurrencyShares Australian Dollar Trust (FXA) settled at $71.61, up $0.59 or +0.83%.
The Aussie Dollar was also boosted by upbeat economic news with private credit surging 0.9% in November, the biggest gain since 2007 when the housing market was booming ahead of the global financial crisis.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. The trend turned up earlier today when buyers took out the previous main top at .7224. A move through .7083 will change the main trend to down.
The AUD/USD is currently trading on the strong side of three pivots at .7212, .7182 and .7108, making these levels support.
The main trend is .7556 to .6993. Its retracement zone at .7275 to .7341 is the next upside target area. Sellers could come in on the first test of this zone. Overcoming it, however, will put the AUD/USD in a position to accelerate to the upside.
Daily Swing Chart Technical Forecast
The direction of the AUD/USD on Thursday will likely be determined by trader reaction to .7212.
A sustained move over .7212 will indicate the presence of buyers. If this move is able to create enough upside momentum, we could see a surge into .7275 to .7341. It all depends on the volume, which could be below average because of the holiday trade.
A sustained move under .7212 will signal the return of sellers. The first target is .7182. If this level fails as support then prepare for a possible acceleration into .7108.For a look at all of today’s economic events, check out our economic calendar.