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Terence Wu, an FX strategist at OCBC Bank, notes that the 0.7150 supported the AUD/USD pair and expects the aussie to trade between 0.7150 and 0.7250 next sessions. AUD/USD is nearing the 0.7186 daily high as trades just below the 0.7180 mark. 

Key quotes

“Domestic factors weigh, with RBA’s Ellis projecting a softer than expected rebound in the Australian economy and employment figures that are likely to remain weak in 2021.”

“Globally, Sino-US tensions should also do the AUD-USD no favours. However, the support at 0.7150 held amid ongoing risk-on sentiment.”

“Continue to expect a 0.7150 to 0.7250 range for now. A deeper retracement to 0.7070 may negate the recent supported posture.”