The AUD/USD pair is trading on the positive side. Encouraging Australian data released at the beginning of the day provided support to the pair, as the AIG Performance of Manufacturing Index improved to 58.8 in February from 55.3 in the previous month. The Commonwealth Bank Manufacturing PMI for the same month printed at 56.9 from 56.6 in January. Also, February TD Securities Inflation resulted at 1.6% YoY. The advance picked momentum in the American session, as US stocks were boosted by upbeat local data.

Monetary policy meeting of Reserve bank is in this Tuesday. Meanwhile the central bank is expected to maintain rates on hold at 0.1% and the bond-buying program unchanged, after boosting it in February by A$100 billion from mid-April.

Adding to the support of the Aussie, Australian shares continued their climb on Tuesday, with technology stocks leading gains, as a rollout of another vaccine in the United States and optimism over a coronavirus relief package boosted hopes of a quicker global economic recovery.

Wall Street rallied overnight as bond markets calmed after a month-long selloff, while the rollout of Johnson & Johnson’s JNJ.N newly authorised coronavirus vaccine and hopes of the U.S. fiscal stimulus being passed by mid-March lifted investor sentiment.

Australia’s S&P/ASX 200 index .AXJO rose as much as 1.05% to 6,860.70, its highest since Feb. 19. The benchmark finished 1.7% higher on Monday after upbeat economic data strengthened recovery hopes. The Reserve Bank of Australia on Monday also increased the size of its daily quantitative easing programme which also aided sentiment.

On the other hand, Along with US, Bonds volatility is also a concern in Australia. Australian policymakers need to intervene in the bond market to keep the yield on the 3-year bond under control last week, although there are little chances they would make an announcement on the issue this time.

Atlanta Fed President Raphael Bostic said last week that bond yields remain comparatively low, while Federal Reserve Chair Jerome Powell has also shown no undue concerns about rising bond yields.

AUD/USD 4 Hour Chart:

Support: 0.7722 (S1), 0.7675 (S2), 0.7643 (S3).

Resistance: 0.7802 (R1), 0.7834 (R2), 0.7881 (R3).

Amidst all the catalysts supporting Aussie against greenback, we expect a bullish trend for AUD/USD.