AUD/USD: Bulls flirt with 0.7600 amid Brexit optimism, US dollar weakness

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  • AUD/USD probes the upper end of short-term trading range between 0.7568 and 0.7591.
  • US Democrats are up for passing $2,000 paycheck after President Trump obstructed the stimulus.
  • EU-UK keeps talking Brexit with an announcement likely to roll out during early Thursday in Europe.
  • Australian markets are partially off due to Christmas Eve but risk catalysts can entertain intraday traders.

AUD/USD extends Wednesday’s recovery moves toward the 0.7600, currently around 0.7590, during Thursday’s Asian session. Although recently positive Brexit updates pushed the aussie pair to break immediate trading range with a one-pip uptick, banking holiday in Australia and year-end sparse trading elsewhere.

The UK’s readiness to compromise fisheries terms pushes the Brexit talks towards an imminent deal. However, spokesperson of the European Union’s (EU) Chief Brexit Negotiator Michel Barnier recently said they’re, “Going through the details now of UK trade deal, no final agreement yet confirmed.” The official also stated that the European Commission statement on the UK trade deal is expected on Thursday morning.

In the US, President Donald Trump warned Iran about its Baghdad attack while turning down the defense bill passed by Congress adds to the tension with China and Russia. It should also be noted that the Democratic Party members are all set to inflate the paycheck amount from the previously agreed figure of $600 to $2,000 after President Trump rejected the stimulus.

Elsewhere, China’s Ministry of Finance showed readiness to ease trade restrictions on a bunch of 883 high-demand products. Though it’s not clear whether Australia will benefit from it considering the latest tussle between Canberra and Beijing.

Against this backdrop, S&P 500 Futures struggle for a clear direction around 3,685 while Japan’s Nikkei is up 0.50% by press time.

AUD/USD traders will keep their eyes on the Brexit headlines for further direction, expectedly north, whereas updates from the US may offer intermediate moves. Additionally, news concerning the coronavirus (COVID-19) and vaccine, which haven’t been positive off-late, can probe the optimists.

Technical analysis

Sustained trading beyond 21-day SMA, at 0.7488 now, favor the AUD/USD upside towards breaking the 0.7600 and challenging the monthly high near 0.7640 afterward.

 

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