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  • AUD/USD begins the week with an upside gap, stays near seven-week top flashed last week.
  • Biden wins US Presidency but Trump challenges the results, GOP keeps the Senate.
  • US COVID-19 Task Force Team will be formed later today, global markets cheer hopes of further stimulus.
  • A light calendar keeps risk catalysts in the spotlight, US politics, virus woes are the key.

AUD/USD eases to 0.7275 from the week-start jump to 0.7278, versus Friday’s close near 0.7260, as Asian traders prepare for Monday’s trading. In doing so, the aussie pair marks another failure to cross the 0.7300 round-figure while staying near the highest since September 21. Although Joe Biden’s victory in the US presidential election boosts the hopes of American stimulus, Donald Trump’s lawsuits against various state results keep the outcome uncertain despite a week full of activity.

No smooth road for Biden…

In addition to Trump’s challenge to the election results, Republicans hold in the Senate also probes the President-elect Joe Biden despite winning the public support in 2020 elections. As a result, global investors are cautiously optimistic over their hopes of easy money off-late. Even so, the Democratic member is up for conveying the fresh team of the coronavirus (COVID-19) task force, as he promised, on Monday to fight the pandemic.

Other than the political uncertainty, which is expected to last for a bit longer, the COVID-19 woes are another major problem challenging the risk sentiment. While global cases surpass 50 million on Saturday, numbers from the US also rose past-100,000 for the third consecutive day, needless to mention about more than 300K figures for fresh covid infections in Europe. The pandemic is getting larger day-by-day during its second wave in the developed nations, which in-turn hamper the expectations of economic recovery in late-2020.

It’s worth mentioning that the lack of clarity over Brexit offers an extra bar to the trading sentiment while Friday’s upbeat US employment data for October also questioned the AUD/USD buyers.

Against this backdrop, equities await fresh clues after the recent run-up while the US 10-year Treasury yields improved back above 0.80%.

Moving forward, a lack of major data/events keeps the market directed to the risk catalysts for fresh impulse. Herein, news from the US polity, Brexit and the coronavirus will be important to watch.

Technical analysis

While 0.7290 and the 0.7300 threshold offer immediate upside barriers, the mid-September tops near 0.7345/50 also stand tall to challenge the AUD/USD bulls. However, an upward sloping trend line from September 22, at 0.7262 now, restricts the sellers’ entries.