AUD/USD Could Target The 0.7400 level As The Aussie Rallies

The Australian Dollar has been performing excellently against the US Dollar and other major currencies and could rally higher in the coming hours.

AUS/USD Pair Is Testing The 0.7350

The AUS/USD pair is having an excellent start to the day as Aussie takes full advantage of the Greenback’s current poor performance. The Aussie is one of the best performers in the market and could go higher against its American counterpart soon.

At the time of writing, the AUS/USD pair is trading at 0.7349 and could soon surpass the 0.7350 pivot level if the current market trend continues. The Aussie has taken full advantage of the rising copper prices to strengthen its performance against the Greenback.

The AUS/USD pair has been rallying over the past few hours and has now set a new multi-week high at 0.7349. If the current positive trend is maintained, the Aussie could challenge the 0.7400 level over the coming hours or days. Market analysts are optimistic about the AUD’s performance in the short term, thanks to the current fundamentals.

Analysts at OCBC Bank believe that the Aussie has what it takes to gain more ground against the US Dollar. According to the economists, the Australian Commonwealth Government Bonds (ACGBs) have underperformed the US Treasuries (USTs) in run higher in yield. Thus providing additional support for the Australian Dollar beyond risk sentiment.

Friday’s Poor NFT Data Is Affecting The US Dollar

The Greenback has been struggling against some of the major currencies following the NFP report on Friday. The United States Bureau of Statistics published the nonfarm payroll data on Friday, reporting a 194,000 increase in jobs last month.

However, while there is addition of jobs to the US economy, it wasn’t up to what analysts had expected. Market experts and analysts had expected at least 500,000 jobs added to the US economy in September as the country continues to recover from the pandemic. The poor NFP data is affecting the Greenback’s performance in the market.