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  • Aussie cheers trade optimism, USD weakness and gold-price rally.
  • China NBS Manufacturing PMI beats estimates, with 50.2 in Dec.
  • AUD/USD is on track for fifth straight weekly gain.

The ongoing weakness in the US dollar across the board amid US-China traded deal optimism has helped the AUD/USD pair to sustain above the key 0.7000 upside barrier so far on New Year Eve.

High Yielders Gather Pace

Year-end profit-taking in the US dollar amid thin market conditions and in anticipation of the US-China phase one trade deal signing continues to keep the buck broadly undermined.

The US-China phase one trade deal would likely be signed in the next week, although US President Trump or US Trade Representative will confirm the same, said the White House’s trade adviser Navarro in an interview with Fox News on Monday.

At the time of writing, the spot is flirting with fresh five-month highs of 0.7009, up 0.20% on the day while the US dollar index loses -0.05% and trades close to five-month troughs of 96.61.

Moreover, the dollar weakness driven upsurge in gold and oil prices also collaborates with the upbeat momentum seen in the resource-linked Aussie. Gold prices also continue to benefit from risk-hedging heading into 2020 while both crude benchmarks derive strength from the US-Middle East tensions.

Looking ahead, the spot will continue to remain buoyed by the optimism surrounding the trade deal amid holiday-thinned light trading. Meanwhile, the US CB Consumer Confidence data will be eyed for fresh dollar trades later in the NA session.

AUD/USD Technical levels to watch