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The Australian and New Zealand dollars edged higher against their U.C. counterparts on Thursday due to the continued deteriorating dollar demand, following the U.S. President-elect Donald Trump’s first press conference.  

AUD/USD added 0.48% to a fresh one-month high of 0.7477.

The dollar remained pressured after Trump has failed to provide details on his pledges to boost fiscal spending and cut taxes during Wednesday conference.

Meanwhile, the greenback has found support in last week’s heightened expectations for a rate hike this year.

After the Federal Reserve raised interest rates in December, it said that three more hikes are expected in 2017.     

NZD/USD gained 0.58% to changed hands at 0.7095, marking its peak level since December 15.

The U.S. dollar index, which gauges the dollar’s strength against a basket of major peers, declined 0.46% at a one-month low of 101.23, positioning away from its previous 14-year peak of 103.82.

Global Financial Market Turned Roughly

The Australian dollar rallied by around one US cent in the wake of the renewed uncertainty over Donald Trump’s policies, following his first conference since November.

After changing hands around 73.75 US cents before Trump’s speech, the dollar sharply rallied as high as 74.72 US cents, marking its peak level since mid-December as the US dollar went under pressure against a basket of major currencies.  

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Amid Donald Trump’s first news conference, the global financial markets remained wobbly as market participants who are closely watching for comments over plans on tax reform and infrastructure spending were disappointed.

Most of the questioning had focused on the Russian efforts to influence the election and the likelihood of ties between Russia and Trump.

Based on reports, the local currency could have an adequate upward momentum to pull it to US78¢.

Bond Yield Drops, Aussie Higher

The Australian dollar skyrocketed overnight, after the US bond yields declined. Additionally, there were two reasons cited for the decline in US bond yields: Donald Trump has failed to provide details of his fiscal spending plans, and there was a strong demand for an auction of 10-year US treasury notes.

Current Stance of AUD/USD Pair

The chart below illustrates AUD/USD price movement amid President-elect Donald Trump’s lack of specifications on his fiscal spending plans, along with the strong demand for the 10-year US treasury note auction.

Given a bullish tone of the pair, market participants begun selling the currencies as the dollar remained weak and is expected to decline further.

The pair is currently showing positive signs, which traded in a heavy trading volume, nearing at resistance level of 0.75229.

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Conclusion

As the illustrative chart above is showing bulls, market participants are recommended to still wait on the sidelines until a trend is confirmed above its current resistance level.

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