AUD/USD edges 0.63% higher amid mixed risk sentiment, eyes 0.7300

• AUD/USD has rallied to the mid-0.72 area on the US session.
• Mixed risk sentiment dominates currency markets.
• Potential bearish pressure looms with the Jackson Hole Symposium approaching.

The AUD/USD pair has edged higher in the North American session, trading at 0.7254 at the time of writing.

The AUD/USD is posting gains for the second day in a row, but the recent rally could be short-lived. The Jackson Hole Symposium is right around the corner and the possibility of a bond tapering announcement by the Federal Reserve Chair Jerome Powell could strengthen the US dollar. 

The greenback is muted, as the US dollar index, which tracks the performance of the US dollar against a basket of six currencies, is down 0.03%, at 92.95. Meanwhile, the US 10-year Treasury yield is up 22 basis points (bps) at 1.277%.

The market sentiment is mixed, with US equities rise, with the S&P 500 and the Nasdaq 100 up 0.17% and 0.20%, respectively, but the Stoxx Europe 600 down 0.04%. The rise in equities came once the Food and Drug Administration (FDA), granted full approval to the Pfizer Covid-19 vaccine. This is positive news for the market, as the recent Delta variant spread, threatens to derail the global economic recovery.

AUD/USD technical outlook

AUD/USD is trading at 0.7264 at the time of writing. The daily moving averages are located above the price action. The short-term trend is up. If the buyers would like to keep it intact, they will need a break above the 0.7290-0.7300 range, followed by the confluence of the 50-day moving average and the August 4 high around the 0.7415-25 range. If the price clears those hurdles, the next target is 0.7500.

Contrary, the sellers will need 0.7290-0.7300 to hold. Once done, a challenge to November 4 low at 0.7221, followed by October 28 high at 0.7157 and then August 20 low at 0.7105

RSI is at 43.70 and headed higher, while the Average True Range is at 61 pips.