Specifically on Tuesday, the AUD/USD was on another tear to the upside. This is the third day of consecutive appreciation for the AUD. As such, the AUD/USD pair managed to hold above the key 0.6500 level. This movement represents a typically consolidative move – one that investors are keeping a close eye on. This movement comes at the same time that broader market dynamics are shifting positively. Willingness among investors to take on risk is pushing U.S. equities higher.
Continuing with the semblance of bullishness in the AUD/USD pair showing its strong nature by holding its consolidation ever so clearly in the recent action. Most analysts point to the consolidation over that 0.6500 area as a sign of stability. That would indicate a potential opportunity for additional growth moving forward if today’s trends continue. The case for the positive sentiment surrounding the Australian dollar continues to strengthen. In a promising sign, ongoing discussions between the United States and China appear to be progressing positively.
At the same time, gold prices have made subtle gains on Tuesday as well, recovering from daily lows. Aside from some ups and downs in price, gold continued to hold on to a strong base in the market. With geopolitical tensions driving commodity trading behavior, investors are even more focused on this critical commodity.
“Gold holds as US-China thaw lifts mood, eyes on US CPI” – www.fxstreet.com/markets/commodities/metals/gold
Of all the things to note this week, it’s the relationship between equities and commodities. An incipient stabilization of investor sentiment is contributing to a more supportive market environment. U.S. equities are in the midst of impressive bullish momentum. Whatever the short-term fate of these traders’ positions, this extraordinary confidence among traders bodes ill for many asset classes.