AUD/USD extends gains above 0.7700 amid USD weakness. Optimism over vaccines, Georgia run-off vote offset covid growth. Stronger yuan and higher S&P 500 futures support the aussie. AUD/USD is inching closer to the 2020 highs reached at 0.7743, as the bulls have tightened their grip heading into the US ISM Manufacturing PMI release and Georgia’s run-off elections. The aussie was the best performer among the G10 currencies last year and has started the year 2021 on a solid footing. The part of the recent surge in the major can be attributed to ongoing weakness in the US dollar while strengthening of the Chinese yuan also offers support to the bulls. With the Chinese economic recovery gaining momentum and prospects of accommodative policy stance likely to be maintained by the Fed is weighing on the USD/CNY. The Chinese yuan hit the highest level since June 2018 at 6.4303 vs. the greenback earlier today. Meanwhile, AUD/USD also benefits from the coronavirus vaccine-driven economic optimism despite the key global economies battling the covid surge and fresh lockdowns. The upbeat momentum witnessed across the commodities space also seems to be boding well for the resource-linked aussie. Gold hit two-month tops of $1946 while copper almost tested the critical $8K barrier on the London Metal Exchange (LME). Markets also remain hopeful of a sweeping Democrat win in Georgia’s senate race, which will pave the way for additional fiscal support. This could render positive for higher-yielding/ risk assets such as the aussie. In the meantime, the pair will continue to draw support from the US dollar’s softness, as attention turns towards the US ISM Manufacturing PMI release for December. AUD/USD technical levels “An upside break of 21-bar SMA, at 0.7704 now, will eye for the recent highs marked around 0.7740/45, also the highest since April 2018. In a case where the bulls manage to cross 0.7745, April 2018 top near 0.7815 will gain the market’s attention. Overall, AUD/USD remains in an uptrend unless breaking the short-term support line and horizontal area,” explains FXStreet’s Analyst Anil Panchal. AUD/USD additional levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/CAD to move downward to 1.25 by late 2021 – BMO FX Street 1 year AUD/USD extends gains above 0.7700 amid USD weakness. Optimism over vaccines, Georgia run-off vote offset covid growth. Stronger yuan and higher S&P 500 futures support the aussie. AUD/USD is inching closer to the 2020 highs reached at 0.7743, as the bulls have tightened their grip heading into the US ISM Manufacturing PMI release and Georgia’s run-off elections. The aussie was the best performer among the G10 currencies last year and has started the year 2021 on a solid footing. The part of the recent surge in the major can be attributed to ongoing weakness in the US dollar while strengthening… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.