Australia is one of the nine nations which holds a AAA credit rating, the country’s Treasurer Josh Frydenberg said after the US-based Fitch Ratings affirmed the OZ economy’s top-tier AAA rating,

Country’s Treasurer Josh Frydenberg tweeted out that “Fitch says we have ‘weathered the pandemic well compared with peers’ and ‘Australia’s labor market appears to be on a stable path to recovery, supported by the JobKeeper program’.”

Elsewhere, Australia’s Shadow treasurer Dr. Jim Chalmers said, “the biggest threat to our recovery is Scott Morrison and Josh Frydenberg prematurely declaring victory.” “(This ignores) the fact that over two million Australians still don’t have work or enough work, wages are stagnant, and our economy had become less dynamic and resilient well before the pandemic,” he added.

On the other hand, China’s State Councillor and Foreign Minister Wang Yi blamed the previous US government for the tensions in the Sino America. and pushed for fresh ties in his latest comments. He cited further areas for cooperation while stimulating the US to interfere in their initial issues and call back the trade-restrictive duties.

UK’s readiness to calm the virus-led lockdown and Israel’s optimism following the victory over the coronavirus (COVID-19) has favored the market sentiment and increased optimism. Also on the positive side are hopes of the US covid relief package.

US dollar index (DXY) marked its second consecutive negative weekly closing for the first time in 2021 despite the jump in the US 10-year Treasury yields, this creates a negative impact on greenback again favoring AUD/USD.

AUD/USD 4 Hour Chart:

Support: 0.7792 (S1), 0.7715 (S2), 0.7672 (S3).

Resistance: 0.7911 (R1), 0.7954 (R2), 0.8031 (R3).

Market optimism is created for Aussie due to multiple factors like Country’s Treasurer Josh Frydenberg speech and Australia’s readiness on virus handling. Hence we expect a bullish trend for AUD/USD.