Breaking: AUD/USD breaks through critical 0.8000 level, fresh three-year highs

• AUD/USD rides the reflation wave higher.
• The aussie reaches the highest since February 2018.
• Surge in commodities complex underpins the AUD.

The buying interest around the AUD/USD pair remains unabated, as the bulls take out the critical 0.8000 hurdle for the first time since February 2018.

The reflation theme gains momentum in the European session, reflected by the risk-on market mood. Expectations of a quick economic turnaround, courtesy of the US fiscal stimulus and covid vaccines rollout, continues to boost the risk appetite while weighing negatively on the safe-haven US dollar.

The broader market optimism has driven the US Treasury yields sharply higher, with the benchmark 10-year yields up nearly 3.50% at 1.437%, fresh yearly highs.

More to come ..