- AUD/USD wavers around 0.7600 after a 12-pip upside gap to start the week’s trading.
- Trade sentiment remains mixed amid Brexit deal, US stimulus headlines and virus news.
- Aussie banks are off due to Boxing Day, American aid package updates will be the key to watch.
AUD/USD holds above 0.7600, clings to 0.7603 off-late, during the early Monday morning in Asia. Although Aussie banks join their Kiwi counterparts to celebrate Boxing Day, the passage of the Brexit deal and US President Donald Trump’s rejection of the coronavirus (COVID-19) aid package to entertain the traders. Also in the headlines are fears of the further increase in covid numbers, amid year-end celebrations, as well as mixed updates on vaccinations.
On Christmas Eve, UK PM Boris Johnson proved his promise to get the Brexit deal done and cheered the much-awaited event’s positive passage. While the trade agreement needs to be ratified by the European Union (EU) and the UK’s parliaments, there no major barriers to probe the bulls.
Alternatively, US President Donald Trump refrained from acknowledging the policymakers’ efforts to agree on the COVID-19 aid package. The Republican Party member currently demands a $2000 paycheck to sign the stimulus without which the American government shutdown will be imminent after Tuesday.
Elsewhere, US Health Official Dr. Anthony Fauci warned on Sunday, per CNBC, that an already-rising tide of coronavirus infections may get another boost as Americans flock together for Christmas and New Year’s celebrations despite warnings from public health officials. It should also be noted that Bloomberg’s update on postponing of the Pfizer-BioNTech shots, citing transit issues, also highlights vaccine news for AUD/USD traders.
Against this backdrop, global markets remain mostly inactive due to the year-end holiday mood and a light calendar.
Looking forward, US stimulus updates will join the COVID-19 news and vaccine headlines to offer intermediate jitters. However, a lack of interest in trading can keep AUD/USD in a choppy range near the year’s top, also the highest since June 2018.
Technical analysis
Although lower high formation probes AUD/USD buyers unless witnessing a break of 0.7620, an ascending trend line from November 13, at 0.7615 now, restricts the pair’s pullback moves.
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