/USD Below 0.77

AUD/USD slightly higher in early Asia on Tuesday, the pair last up 13 pips at 0.7709, reclaiming the 0.77 handle after an up and down session on Monday. After dropping as low as 0.7666 on Monday the pair recovered up to 0.7718 heading into the US close.

• The greenback has continued to strengthen, driven by higher real yields and political theatre in the US with US House Speaker Pelosi saying last night the House intends to bring impeachment action against Trump this week.
• Risk sentiment in the region is broadly positive, stocks have started in positive territory and iron ore continues to remain near multi-year highs.
• Several large option expiries roll off in AUD/USD today, AUD 508m at 0.7650 and AUD 828m at 0.7750.
• AUDUSD traded to a fresh high last week of 0.7820 but has since pulled back and traded lower into the Monday close. The current move lower is considered a correction. Support levels to watch are located at 0.7643/42, Jan 4 low and the 20-day EMA. A break of this area would signal scope for a deeper pullback. On the upside, and with the uptrend still intact, a breach of 0.7820 would resume the trend.
• The domestic data calendar is thin this week, November job vacancies data is due on Wednesday, November home loans data is slated for Friday.