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.

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

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD struggles to hold above 1.0400 as mood sours

EUR/USD struggles to hold above 1.0400 as mood sours

EUR/USD stays on the back foot and trades near 1.0400 following the earlier recovery attempt. The holiday mood kicked in, keeping action limited across the FX board, while a cautious risk mood helped the US Dollar hold its ground and forced the pair to stretch lower. 

EUR/USD News
GBP/USD set to swoon on holiday-shortened week

GBP/USD set to swoon on holiday-shortened week

GBP/USD waffled near the 1.2550 level on Monday, kicking off the holiday trading week with a third of a percent decline as market sentiment coils. Market volumes are set to drain out of global exchanges as investors broadly hang up their hats for the Christmas holiday, and global markets will be shuttered on Wednesday.

GBP/USD News
Gold flat lines above $2,600 ahead of holiday trading week

Gold flat lines above $2,600 ahead of holiday trading week

Gold price trades flat around $2,610 during the early Asian session on Tuesday. Markets face a relatively quiet trading session ahead of the holiday trading week. The US Richmond Fed Manufacturing Index for December is due later on Tuesday. 

Gold News
Ethereum risks a decline to $3,000 as investors realize increased profits and losses

Ethereum risks a decline to $3,000 as investors realize increased profits and losses

Ethereum is up 4% on Monday despite increased selling pressure across long-term and short-term holders in the past two days. If whales fail to maintain their recent buy-the-dip attitude, ETH risks a decline below $3,000.

Read more
Bank of England stays on hold, but a dovish front is building

Bank of England stays on hold, but a dovish front is building

Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures