FxWirePro: AUD/USD breaks above 21-EMA, poised for further upside

AUD/USD chart - Trading View 

AUD/USD extends bounce off 50-DMA, trades higher for the 3rd straight session to hit fresh 9-day high at 0.7731.

Risk assets were buoyed by expectations for sustained fiscal stimulus roll outs and wide spread immunization programs.

The US stimulus optimism-driven revival of the reflation trade underpins the higher-yielding Aussie. Australia’s NAB Business Survey came in mixed for January.

Australia’s NAB Business Confidence printed at 10 for January month, above -4 prior and beating the forecast of 8. 

Meanwhile, the Business Conditions for January fell below market consensus of 11 and the previous readings of 14 to 7.

Technical indicators for the pair are shifting bullish in the near-term. Pullback on account of bearish divergence has held support at 50-DMA.

Stochs and RSI are now biased higher and GMMA indicator shows near-term moving averages have shifted bullish.

Price action is on track to test 88.6% Fib at 0.7836. Daily cloud and 50-DMA offer strong support. Retrace below negates bullish bias.