Commodity Recovery Lifts AUD

AUD/USD gained throughout the session, finishing Wednesday around 50 pips higher. The pair last trade at 0.7574. The gain has been catalysed by a rebound in commodity prices, while general risk appetite has been boosted as the UK and the EU inch closer to a deal.

• There could be headwinds for AUD as the number of Covid cases grows the Northern Beaches area of Sydney. The number of cases has now risen to 97 and the lockdown is extended over the festive period to contain the spread.
• There is nothing on the economic docket for Australia tonight, and markets are closed Friday and Monday for festive holidays. Volumes are likely to be thin in a quiet session ahead.
• AUDUSD is off recent highs and despite Monday's volatility, maintains a bullish outlook. The pair traded to a fresh trend high of 0.7640 last week reinforcing a bullish theme. Moving average studies are also in a bull mode and together with a positive price sequence of higher highs and higher lows, reinforce the current bullish theme. The focus is on 0.7677 next, Jun 6, 2018 high. Key support is at 0.7462, a break would alter the short-term picture