AUD/USD: En-route fresh multi-month high above 0.7640, eyes US Senate updates

AUD/USD consolidates recent gains above 0.7600 while waiting for US stimulus updates from Capitol Hill.
Senate Majority Republican Leader Mitch McConnell recently blocked the way for $1,400 extra paycheck amount.
Headlines concerning China, Brexit and the virus can offer additional direction amid a light calendar.

Anil Panchal FXStreet

AUD/USD buyers catch a breather as the pair eases to 0.7605 amid the initial hour of Wednesday’s Asian trading. The quote defied Monday’s downbeat performance the previous day amid broad US dollar weakness on the American coronavirus (COVID-19) aid package developments. Though, cautious sentiment ahead of the final steps in the Senate triggered the latest pullback.

It’s worth mentioning that Wall Street benchmarks stepped back from record highs amid the recent risk-off mood but the US dollar index (DXY) bears flirt with the 90.00 mark to favor commodities and Antipodeans.

Republicans are the threat to Trump’s decision…

Although US President Donald Trump surprised global markets during the weekend while passing a $2,000 covid paycheck figure and the House backed the move too, Republican Party members have lined up to block the move in Capitol Hill during today’s voting. Considering the already disbursed $600 aid payment, the Congress members are set to decide on the additional $1,400 paycheck amount.

Recently, US Republican Senate Majority Leader McConnell rejected, by unanimous consent, Democrat’s request to back the transfer of an additional $1400 to each American. Doubts were also raised over US President Trump’s veto on the defense bill after the House overrode it the previous day while Senate members are up for questioning that move too.

As the limit to the US government funding is expiring soon, policymakers will be pushed to arrive at a decision. Even if they don’t, the US Labor Department said the government will pay unemployment benefits for the week of Dec. 27 despite President Trump signed the new stimulus bill after the program had lapsed. Hence, today’s result is likely to have a wider impact if being positive but may generate a kneejerk reaction in case of disappointment.

Also likely to keep the AUD/USD traders worries are the fears of the fast running covid figures in the UK and the US. Though, the vaccination process placates bears. On the other hand, the Brexit deal will be voted in the UK’s Parliament and is likely to have a smooth road considering PM Boris Johnson’s majority. Furthermore, rumors that China will be the only major country to grow in 2020 and lead the world in 2021 can also combat the year-end boredom amid a lack of major data/events.

Technical analysis

AUD/USD bull’s ability to keep the quote above key SMAs, starting from 5-day Simple Moving Average (SMA), joins upbeat momentum indicators to back expectations of witnessing another attempt to challenge June 2018 top of 0.7675.

Additional important levels

Overview
Today last price	0.7609
Today Daily Change	30 pips
Today Daily Change %	0.40%
Today daily open	0.7579

Trends
Daily SMA20	0.7518
Daily SMA50	0.734
Daily SMA100	0.7271
Daily SMA200	0.698

Levels
Previous Daily High	0.7641
Previous Daily Low	0.7557
Previous Weekly High	0.7619
Previous Weekly Low	0.7461
Previous Monthly High	0.7438
Previous Monthly Low	0.699
Daily Fibonacci 38.2%	0.7589
Daily Fibonacci 61.8%	0.7609
Daily Pivot Point S1	0.7544
Daily Pivot Point S2	0.7508
Daily Pivot Point S3	0.746
Daily Pivot Point R1	0.7627
Daily Pivot Point R2	0.7676
Daily Pivot Point R3	0.7711

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.

GBP/USD remains offered; bears target 1.3600

GBP/USD now leaves behind part of its recent recovery and revisits the low 1.3600s at the beginning of the week. Indeed, Cable trades with a mild downward bias amid decent gains in the Greenback as investors remain wary of upcoming US data releases and the Jackson Hole event.

EUR/USD remains sidelined above 1.1650

EUR/USD trades on the defensive following the closing bell on Wall Street on Monday, hovering around the 1.1660 region and adding to Friday’s small decline. The pair’s pullback comes in response to an acceptable rebound in the US Dollar in a context of generalised caution ahead of key US data releases and Chair Warsh’s speech in Jackson Hole.

Gold poised to extend its bullish run

Gold surrenders part of its initial advance, although it keeps its bullish pace well and sound above the $4,600 mark per troy ounce on Monday. The precious metal’s move higher comes despite slight gains in the US Dollar and a modest pullback in US Treasury yields across the curve.

XRP surged 72%, but is the rally really about XRP?

Ripple (XRP) surged more than 72% in less than a week, its strongest rally since July 2025, as cryptocurrency prices broadly broke out. But the move has a problem: it may have little to do with XRP itself. The token's near-term rally appears to have been driven largely by a broader liquidity shift after the US Treasury expanded long-end bond buybacks, pulling yields lower and lifting risk assets.

Convulsion in credit markets

The United States government just posted a $432.3 billion deficit for July, the largest monthly shortfall since March of 2021. That single burst of red ink pushed the yeartodate deficit to $1.8 trillion, with two months still remaining in fiscal 2026. At this pace, Washington will soon wax nostalgic for the “good old days” when annual deficits were only $2 trillion.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.