- AUD/USD reverses pullback from 0.7820, holds gains around multi-month top, up for the third consecutive day.
- Jon Ossoff wins Senate elections in Georgia, Trump urges supporters to go home in peace despite stolen elections.
- Virus woes, vaccine updates and Sino-American may regain market attention but Capitol Hill’s moves will be the key.
- Aussie Trade Balance for November, ISM Services PMI to decorate the calendar.
AUD/USD takes the bids near 0.7805/10 during the early Thursday morning in Asia. The aussie pair recently rallied on the US dollar weakness as risks got stormed by the Senate elections in Georgia and the riots in Capitol Hill afterward. Having recently heard about Jon Ossoff’s victory, markets may return to old catalysts though American politics is still a hot topic to watch for risk analysis.
US politics is the key…
Be it the jump in the coronavirus (COVID-19) infection or fresh US-China tension, not to forget minutes of the US Federal Open Market Committee (FOMC), nothing could beat the spectacular moves in America. Initially, it was a nail-biting race between the Democrats and Republicans before US President Donald Trump’s supported created noise and called for curfew in Washington.
As per the latest updates, Democrats will take control of the US Senate for the first time in six years as Jon Ossoff is projected as a clear winner in the Georgian Senate elections by NBC and CBS. Though, Republican Kelly Loeffler’s victory requires Vice President-elect Kamala Harris to cast a tie-breaking vote.
Read: Breaking: NBC and CBS projects Democrat Jon Ossoff to win Senate runoff race in Georgia
Elsewhere, President Trump shared a video of him trying to placate the mob occupying Capitol Hill while also terming the elections as stolen. It should be noted that US Senate will not reconvene at Capitol today while chatters over a Congresswoman preparing Articles of impeachment against Trump as also crossing wires off-late.
On a different page, the UK keeps marking the record covid figures and the global angst against China’s non-cooperation on virus trace investigation mounts. Further, the New York Stock Exchange rethinks over the delisting of Chinese securities and multiple Hong Kong protesters were detained, which in turn propelled ire against Beijing.
Talking about the data, neither Aussie activity numbers from the Commonwealth Bank nor the FOMC minutes could entertain traders. Though, as the markets are likely to get back to normalcy, final figures of November Trade Balance from Australia will be the key to watch. That said, forecasts suggest the headline figures ease from 7456M prior to 6200M.
It’s worth mentioning that Wall Street’s run-up and the US dollar’s drop to a multi-month low, not to forget gold’s notable declines to $1,900 couldn’t portray the risk sentiment amid geopolitical plays in the US. Hence, traders may look for a clear sign, which may be relating to a covid stimulus after Democratic victory, for further AUD/USD upside.
Technical analysis
Although fresh buying awaits a clear run-up beyond April 2018 top near 0.7815, AUD/USD sellers aren’t likely to enter unless witnessing a clear break below December 17 top around 0.7640.
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