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Uptrend Persists; Data Eyed

AUD

The rise in AUD/USD continues, the pair last up 10 pips at 0.7813 and just shy of yesterday's high at 0.7820. AUD is getting a boost after reports that the state of Victoria has zero confirmed Covid cases in the past 24 hours.

  • The sweep of Democratic victories in the Georgia Senate run off saw the greenback recede which also helped support the pair.
  • AUD is stronger despite some weakness in iron ore prices which have fallen today and snapped a 3 day winning streak in the process. Iron ore exports from Australia rose in December, indicating heavy supply and weighing on the metal.
  • From a technical perspective 5he pair last week breached resistance at 0.7640, Dec 17 high and a bull trigger. This confirmed a resumption of the uptrend. The break higher this week reinforces underlying bullish conditions by maintaining the bullish price sequence of higher highs and higher lows. The focus is on 0.7885 next, Mar 15, 2018 high. Moving average studies are in a bull mode too. Support is at 0.7643, Jan 1 low
  • Markets will look ahead of Australian trade data and building approvals at 0030GMT/1030AEDT.

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