AUDUSD surges on dollar weakness and global manufacturing strength.
AUDUSD under the bullish pressure today – under the effect of the wide-spread risk-on sentiment and the resultant strong US dollar weakness after Democrats won one U.S. Senate race in Georgia moving them closer to securing control of the chamber – which would the give the power to advance Joe Biden’s policy goals. The pair is also underpinned by the strong Australian dollar optimism as signs of strength in global manufacturing underpinned commodity prices. A range of surveys overnight showed manufacturing globally had proved resilient in December despite escalating virus cases. Australian dollar sentiment was also helped by the steady rise in the Chinese Yuan, which made resources more affordable for importers there (China being important exports partner for Australia).
Expect buyers on downward corrections.
Next resistance to watch – 0.7920
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