- USD sales continue on encouraging momentum and Fed dovishness.
- Dollar index at multi-year level.
- Unemployment falls in Australia.
AUD / USD will be trading at the highest level since June 2018 and is trying to push past 0.7600, continuing the four – day winning streak, ahead of the European opening.
Progress towards the US $ 900 billion pandemic aid package and the Fed’s depressing approach in tackling inflation and slowing employment are putting pressure on the green. The dollar index has fallen to its lowest level in two and a half years, pushing to break the support near the 90 level. The index is down 0.48 percent for the day.
The AUD / USD bulls also received a boost from strong Australian employment data, which showed the unemployment rate fell to 6.8 per cent in November and created 90k higher-than-expected jobs.
Positive earnings numbers reduce pressure on Australia ‘s central bank to turn around.
Also, market participants will see positive shifts between Australia and China, following the comments from Australian Treasurer Josh Frydenberg on the trade issues between the two countries.
Thus, AUD / USD could continue its uptrend backed by RBA policy expectations, vaccine heads, and U.S. stimulus talks.
Traders also monitor weekly earnings claims in the U.S. for short-term trading opportunities.
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