FxWirePro: AUD/USD holds marginal gains, AUD finds bids as Pfizer’s coronavirus vaccine gets TGA approval

AUD/USD chart - Trading View 

AUD/USD trades 0.39% higher on the day at 0.7742 at around 05:37 GMT, up from session lows at 0.7705.

The Australian dollar found some buying action after Pfizer’s vaccine was given a green light by Australia’s medical regulator, Therapeutic Goods Administration (TGA).

An uptick in the US stock futures also boosts risk sentiment, supporting risk assets. However, gains could be short-lived, as the coronavirus pandemic worries remain.

The pair trades with a major bullish bias. But, price action has been moving away from upper Bollinger band on the weekly chart.

Also, Doji formation on the previous week's candle dents upside. Price action has retraced a brief dip below 200H MA.

21-EMA on the daily charts offers strong support. Breach below will see further weakness. Bearish divergence on the daily charts keeps scope for weakness.

Going forward, focus is on the Australia Q4 Consumer Price Index scheduled for release on Wednesday. 

Weaker-than-expected inflation would raise doubts on the economic recovery and validate the Reserve Bank of Australia's dovish stance, posing downside risks for the Aussie dollar.