Fresh Session Lows For AUD/USD

AUD/USD still lower in Asia, last down 45 pips at 0.7577, just off session lows.

• Oil is lower as the deteriorating UK Covid situation weighs, stricter lockdown measures and the closure of borders with Europe are set to impact fuel demand.
• Iron ore is higher, futures up around 4.3% in Singapore, but this is failing to support AUD. On Friday there were reports of a landslide at a mine owned by Brazil's Vale buried and killed a worker, activity in the area is suspended pending an investigation.
• Option activity this week seems to be focused on AUD puts, a combined AUD 2.1bn rolling off between 0.75-0.76 this week, the majority on Tuesday.
• MNI technical analysis sees the pair still in a bullish trend despite the pullback. The Dec 2 break of 0.7414, Sep 1 high and former key resistance confirmed a resumption of the uptrend that began Mar 19. Moving average studies are also in a bull mode highlighting current sentiment.
• The focus is on 0.7677 next, Jun 6, 2018 high. Key near-term support is at 0.7507, Dec 15 low. The 20-day EMA intersects at 0.7467, also a firm area of support while intraday support is at the Dec 17 low of 0.7567, with intraday resistance at 0.7640, the Dec 17 high.