Risk On Sentiment Supported In Asia

Risk on sentiment in Asia supported a bid tone in AUD, AUD/USD gapped higher at the open, the pair currently sits around 9 pips off session highs at 0.0750, around 16 pips higher on the session.

• The U.S. emergency approval of the Pfizer Covid-19 vaccine (and potential launch of vaccine deliveries from Monday), the drafting of a bipartisan fiscal stimulus package to be presented in the U.S. Congress on Monday (albeit there is no guarantee it will be passed) and another extension to the Brexit talks deadline have conspired to generate a risk-on impetus at the start to the week.
• Some sizable option expiries in AUD/USD this week at the 0.7500 handle; some AUD 1.2b expire on December 16 and AUD $1.4b roll off December 18.
• From a technical perspective 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 reinforcing current conditions. The focus is on 0.7583, the Jun 14, 2018 high and 0.7638, a Fibonacci retracement. Key short-term support is at 0.7373, Dec 7 low.
• There is a raft of data due from Australia during the week, most notably RBA December meeting minutes, weekly payroll data, PMI figures and a speech to be given by RBA's Head of Financial Stability Kearns all on Tuesday 15; Westpac leading indexes on Wednesday 16; November employment report on Thursday 17.