FxWirePro: AUD/USD extends previous session's upside, risk-on in wake of FDA’s full approval of Pfizer jab supports

AUD/USD chart - Trading View 

AUD/USD extends gains above 0.72 handle as markets cheer vaccine optimism and easing of taper tantrum amid covid woes and geopolitical fears.

The major was trading 0.52% higher on the day at 0.7242 after closing 0.93% higher in the previous session.

On the data front, U.S existing home sales stood at a higher-than-expected 5.99 million in July. 

However, August’s manufacturing purchasing managers index (PMI), Markit composite PMI and services PMI were 61.2, 55.4, and 55.2 respectively.

Meanwhile, investors also look to the Fed’s annual Jackson Hole symposium (Aug. 26 to Aug. 28) for clues regarding asset tapering and interest rate hikes.

Focus will also be on U.S. Q2 GDP (Thursday) and the core personal consumption expenditures price index, alongside personal income and spending data (Friday).

Technicals for the pair are turning bullish. The pair has edged above 200-week MA. Price action has approached 200H MA and GMMA indicator has turned bullish on the intraday charts.

Price action holds above 5-DMA support, scope for test of 21-EMA at 0.7301. Decisive break above 21-EMA required for upside continuation.