Tuesday, the Aussie is getting a boost from market optimism. On the third day, the pair goes up from 0.6650 to reach 0.6765, the highest in the last two weeks.

Early in the European session, AUD/USD currency pair hit a high of around 0.6775 before falling back. It kept its bid tone, with bearish moves limited above 0.6755.

On Tuesday, the Chinese National Health Commission (NHC) said the quarantine for travelers coming into China would end on January 8. It made people take more risks.

Tuesday, optimism in the market makes the sentiment-linked Australian dollar go up by 0.6%. Most Asian stock markets are up a little bit, while indexes in London and Paris are up 0.5% and 0.8%, respectively.

The US dollar is still weak. The Greenback could be doing better because people are more willing to take risks and because US data from Friday showed that inflation pressures were easing, which let the Fed slow down its tightening of the money supply.

The US Goods Trade Balance, Housing prices, and the Dallas Fed Manufacturing Index will be the most critical events in the North American session, which will be quiet after Christmas and have a small number of macroeconomic events. But, likely, Forex markets are okay.

Conclusion

Given that the market’s intraday gains have stabilised and there won’t be any critical data or events until Friday’s China PMIs, pair traders should look for a qualitative catalyst for direction.