Australian dollar nears a two-week high as stock markets push higher

The risk mood continues to improve in US markets with the S&P 500 extending gains to 1.6%.

In turn, that's helped to boost AUD/USD to the best levels of the day. The pair is now up 55 pips and threatening the weekly high and the best levels since July 24.

A break higher could catalyze into a larger bounce from the rout down to 0.6345 from 0.6780. These current levels mark the 50% retracement of that decline with the 61.8% level at 0.6632 and that's a reasonable target if the momentum higher continues.