Having ended 2020 on a stable note, AUD/USD kicks-off 2021 on the the front foot, as the bulls control to recapture the 0.7700 level.
However, the similarly upside seems elusive, as the US greenback tries a tepid leap from the 2-1/2-year troughs amid developing coronavirus worries and vulnerable Chinese PMI data.
The bulls stay weighed down by way of the below-forecast Chinese Caixin Manufacturing PMI, which arrived at fifty three in December vs. 54.9 expectations.
Meanwhile, the enhance in copper and gold costs incredibly offsets the corrective pullback in the US greenback index, maintaining the bid tone intact round the aussie dollar.
From a broader perspective, the coronavirus-vaccine optimism pushed expectations of a quicker monetary restoration proceed to bode nicely for the riskier belongings such as the aussie. Further, an effortless economic coverage stance via international central banks in 2021 should additionally hold the customers hopeful.
The pair awaits the US ISM Manufacturing PMI facts for clean buying and selling impulse. Meanwhile, the virus trends globally and the Georgia Senate election will be carefully eyed for sparkling greenback strikes in the first buying and selling week of 2021.
AUD/USD technical levels
“Overbought RSI stipulations and anticipated consolidation from multi-month excessive suggests a pullback in AUD/USD expenditures in the direction of the mid-December 2020 pinnacle close to 0.7640. However, a two-week-old ascending style line close to 0.7635 ought to prevent temporary downside. Alternatively, a sustained run-up past the yr 2020 top surrounding 0.7745 will become imperative to recall the bulls focused on April 2018 excessive close to 0.7815,” explains FXStreet’s Analyst Anil Panchal.