- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.