AUD/USD: Buyers keep June 2018 top on radar amid US aid package news
- AUD/USD reverses losses from the multi-month high following its bounce off 0.7557.
- US President Donald Trump passes covid aid package, House debates $2000 paycheck amount.
- Aussie-China tussle continues despite no audience due to the year-end holiday mood.
AUD/USD keeps the latest recovery moves near 0.7580 during the early Tuesday. The aussie major refreshed record high the previous day as US President Donald Trump surprised global markets by signing the coronavirus (COVID-19) aid package. Though, the surge in US equities and the greenback weighed on the commodities and Antipodeans afterward.
Stimulus on the way…
US President Trump turned out to be the Santa for global markets on Monday after signing the covid stimulus. Though, his demands for a $2,000 paycheck and removal of section 230 are currently debated in the House. Even so, the US Treasury has already said to disburse $600 weekly paychecks with the top-up in the pipeline if Capitol Hill approves. Recently, House Speaker Nancy Pelosi showed readiness to get the $2000 amount passed.
While the stimulus update pleased risks and propelled Wall Street benchmarks at the week’s start, the Aussie-China tussle and the covid fears probe bulls.
China's imports of Australian copper concentrate fell by 34% to 26,717 tonnes in November, the lowest level since January 2017, according to the data released by the General Administration of Customs. On the other hand, Australia insists the World Health Organization (WHO) inquiry into Covid origin must be robust, despite China's tensions.
Even so, sparse trading during the year-end celebrations and a light calendar keep AUD/USD traders optimistic near the multi-month high.
Looking forward, a lack of major data/events requires the pair traders to watch risk catalysts for immediate direction. Among them, the US stimulus passage and any developments on the Canberra-Beijing tension will be the key.
Technical analysis
Although the 0.7600 offers immediate resistance to AUD/USD, buyers can keep attacking 0.7640 while targeting to refresh the highest levels since June 2018 top of 0.7675. On the contrary, a three-week-old ascending trend line near 0.7515 restricts the pair’s short-term downside.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
