AUD/USD consolidates around 0.7450 supported by AUD and risk appetite

AUD/USD  is consolidating important gains and is headed toward the highest daily close in a month, boosted by a weak US dollar against commodity currencies and a stronger aussie that rallied during the Asian session, after the Reserve Bank of Australia left interest rates unchanged and following a less dovish than expected statement that signaled no rate cut soon.

The pair printed a fresh daily high during the American session at 0.7457 and currently is hovering around 0.7450, still holding a bullish tone supported also by risk appetite, with the Dow Jones testing the 18.000 handle.

200 pips in 3 days

From the level it had when the US NFP was released on Friday, the pair is up more than 200 pips. Today it rallied initially and then consolidated gains.

AUD/USD climbed since Friday amid a decline in the VIX (fear gauge) and rising equity prices. Compared to the level it had on Thursday, the Dow Jones Global climbed 1.70%,  gold rose 1.5% while Federal Reserve June rate hike odds dropped from around 20% to 1.9%. The 10-year US bond yield dropped from 1.84% to 1.70%.