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  • Early polls suggest Democratic victory in both Georgia Senate elections.
  • Sino-American tussle intensifies, vaccine news battle virus woes.
  • China’s Caixin Services PMI rose to 56.3 versus 51.00 expected in December.
  • US ADP Employment Change, FOMC Minutes and risk catalyst in the spotlight, Georgia results are the key.

AUD/USD stays depressed near intraday low of 0.7742, currently around 0.7750, down 0.20% on a day, during the early Wednesday. In doing so, the Aussie pair ignores China’s upbeat data as well as initial forecasts of Georgia’s elections.

As per the latest update from Edison Research, “Democratic candidates performed slightly better than president-elect Biden in first 32 counties to post the complete result.” US Dollar is picking up the bids following the news while the risks decline by press time.

Read: Breaking: Georgia Senate race in the hands of the Dems

In addition to the Georgian election updates, fresh tension between the US and China also weighed on risks. Early in Asia, the New York Post quoted World Health Organization’s (WHO) Director-General Tedros Adhanom Ghebreyesus while conveying that China is blocking investigations that probe into origins of the coronavirus (COVID-19). Following that Bloomberg mentioned, “The New York Stock Exchange is reconsidering its decision to halt the delisting of three major Chinese telecommunications firms after Treasury Secretary Steven Mnuchin told the Big Board he opposed its shock announcement to grant the companies a reprieve, said three people familiar with the matter.”

Also on the risk-negative side are concerns over the detention of dozens of Hong Kong activists as well as US President Donald Trump’s fresh executive order to ban business with eight Chinese applications.

On the positive side, the UK Times came out with the news suggesting millions of vaccines reach Britain soon following the US Food and Drug Administration (FDA) conveyed a 95% success rate for leading covid vaccines.

That said, the US dollar index (DXY) rises 0.10% to 89.58 after refreshing the multi-month lows the previous day. On the contrary, the S&P 500 Futures drop 0.45% while stocks in Asia-Pacific also reverse the early day gains by press time.

Talking about the data, China’s Caixin Services PMI for December suggests an increase from 51 forecast to 56.3, versus 57.5 prior. Following the data, marked a mild uptick from intraday low of 0.7744.

Technical analysis

21-day SMA near 0.7660 appears to be the nearest important support ahead of December 17, 2020, high around 0.7640 and a two-month-old upward sloping trend line near 0.7625. Alternatively, overbought RSI seems to challenge the AUD/USD buyers around Tuesday’s top of 0.7779, also the highest since April 2018.