Search ForexCrunch
  • Firmer equities and gold prices provide support to the Aussie.
  • The US will publish the Richmond Fed Manufacturing Index, seen at 9 in December.
  • AUD/USD short-term bullish but capped by strong static resistance area around 0.6930.

The Australian dollar is the best performer against the greenback, holding on to higher ground above the 0.6900 level. The AUD/USD pair is confined to a tight intraday range amid the Christmas holiday keeping most major markets closed.

A stronger gold, which trades at around $1.490 a troy ounce, and Wall Street flirting with all-time highs, provide support to the commodity-linked currency. Easing tensions between the US and China ever since announcing phase one of the trade deal, adds to the positive tone of the Australian currency.

US markets will open their doors today but are due to an early close. The American macroeconomic calendar will offer the Richmond Fed Manufacturing Index for December, foreseen at 9 from -1 in the previous month.

The AUD/USD pair, however, is unable to extend gains beyond the 0.6930 price zone, a level that was unable to surpass ever since breaking below it in July. The pair has broken a long-term descendant trend line coming from January 2018 high this month, which further adds to the bullish case.