​Risk Off Sees AUD/USD Back Below 0.77

AUD/USD fell on Monday, dropping back through the 0.77 handle and posting it's biggest daily loss since Dec 22. The pair last down 1 pip at 0.7665.

• Australia has formed a taskforce to handle the coronavirus vaccine roll-out, the first inoculations are on track for late March according to the Commonwealth chief medical officer. Markets continue to monitor the coronavirus situation in Sydney.
• Much of the decline can be attributed to a recovery in the greenback. AUD/USD gained initially on Monday as the US dollar fell, US markets sold off in the North America session which saw the greenback reverse its fortunes and drag down AUD/USD in the process. In general risk off sentiment prevailed, as markets digest a third national lockdown for the UK.
• It is a quiet domestic economic docket for the session, ANZ Job Advertisements for December are due at 0030GMT/1130AEST. Final December PMI services data are due on Wednesday.
• From a technical perspective AUDUSD is still trading near recent highs. The pair last week breached resistance at 0.7640, Dec 17 high and a bull trigger. This confirmed a resumption of the uptrend and opened 0.7732 next, Apr 20, 2018 high. The break higher also reinforces underlying bullish conditions by maintaining the bullish price sequence of higher highs and higher lows. Moving average studies are in a bull mode too. Firm support is at 0.7557, Dec 28 low.