AUD/USD - Above 0.80, set to end higher for 6th straight week

AUD/USD trades above 0.80 in Asia.
Pair witnessing longest winning streak since July 2016.
Focus on US government funding bill.

Omkar Godbole FXStreet Contributor

Currently, AUD/USD is holding just above 0.80 levels, having clocked a high of 0.8020 earlier today.

The currency pair looks set to end higher for the sixth straight week; its longest winning streak since July 2016.

That said, the overbought nature of the Aussie dollar and the rise in the US Treasury yield above 2.6 percent could cap further gains. Bond King, Jeff Gundlach warned earlier this month that equity markets could come under pressure if the yield rises above 2.63 percent. Serious risk aversion in equities could kill Fed rate hike bets and hurt the US dollar.

Focus on US government bill

US House passed the stopgap funding bill that funds the government into mid-February. The bill now heads to the Senate, where Republicans could have a difficult time getting the bill passed. Rumors are doing the rounds that the Senate may hold an initial test on the floor tonight and that could kill the stopgap bill.

AUD/USD Technical Levels

Jim Langlands from FXCharts writes, " The momentum indicators do generally point higher and a retest of yesterday’s 0.8022 may be on the cards, above which would allow 0.8035/0.8055. There is no data due today, so a rangebound session near 0.8000 looks more likely."

	TREND INDEX	OB/OS INDEX	VOLATILY INDEX
15M	Bearish	Neutral	High
1H	Bullish	Neutral	Low
4H		Neutral	Expanding
1D	Bullish	Overbought	Expanding
1W	Bullish	Overbought	Shrinking
Updated Jan 19, 01:00 GMT

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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