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  • AUD/USD erases early gains to trade near 0.7740. 
  • The pair is yet to take out the trendline falling from Jan. 6 high.

AUD/USD now trades mostly unchanged on the day near 0.7740, having hit a low of 0.7726 in Asia. 

The pair appears on track to test the resistance of the trendline connecting Jan. 6 and Jan. 14 highs, having risen for the third straight trading day on Tuesday. 

A close above the trendline hurdle, currently at 0.7758, would signal a resumption of the broader uptrend from the early November low of 0.6991 and open the doors for a re-test of the Jan. 6 high of 0.7820. 

A breakout looks likely as fiscal stimulus expectations could continue to weigh over the US dollar. Meanwhile, the AUD looks north, courtesy of the rally in oil and other commodities and the latest uptick in China’s Producer Price Index (factory-gate inflation). 

Daily chart

Trend: Bullish above trendline hurdle

Technical levels