AUD/USD to extend its advance to fresh yearly highs above 0.7413

The AUD/USD pair trades near the year high at 0.7413 and seems to have recovered part of its long-term bullish momentum as the market continues to ignore tensions between Canberra and Beijing. Meanwhile, Australia has once again controlled the pandemic, with no new cases in Victoria for three weeks, FXStreet’s Chief Analyst Valeria Bednarik briefs. 

Key quotes

“Australia has once again controlled coronavirus. Victoria has registered three weeks without new cases and deaths, while the latest outbreak in South Australia also came under control without new contagions. On the contrary, the virus spread has accelerated in the US, with record hospitalizations in the country and the death toll nearing 270K.”

“The market keeps ignoring tensions between Beijing and Canberra, which may take a toll on Australian economic growth. The latest on the issue is that China has announced it would implement tariffs on the Australian wine industry as an anti-dumping measure.”

“The US will unveil next week the November ISM PMIs and the Nonfarm Payroll monthly report. The country is expected to have added 520K new job positions in November, while the unemployment rate is expected at 6.8%.”

“The Australian macroeconomic calendar includes November TD Securities Inflation figures, the RBA Monetary Policy decision and Q3 Gross Domestic Product. Economic growth is expected to have contracted by 7.8% in the three months to September. China will publish the November official NBS PMIs, with growth seen contracting but holding in expansion territory.”

“0.7413 is the immediate resistance level ahead of the 0.7470 region, where the pair posted multiple intraday highs back in 2018. Beyond this last, the next relevant level is 0.7520. A critical support level comes at 0.7250, with a break below it favoring a bearish corrective decline that can extend towards 0.7100.”