Last week, the AUD/USD continued to gain throughout the week until Thursday which there was a selloff.
The Australian dollar was amongst the best 2020 performers, ending the year against the greenback above the 0.7700 price line and at levels last seen back at April 2018. The pair gained for a seventh successive week, supported by the constant US dollar weakness. The pair peaked at 0.7740 on Thursday, backed by Wall Street, as US indexes hit record highs ahead of the close on New years eve.
Australia will start the week released the December Commonwealth Bank Manufacturing PMI, foreseen unchanged from the preliminary estimate at 56, and the December RBA commodity Index SDR.
The daily chart for the AUD/USD pair shows that the Momentum indicator eased within positive levels as the RSI indicator consolidates around 73. The 20 SMA maintains its bullish trend below the current level and higher, all of which favor another step higher. In the short term, according to the 4-hour chart, the bulls keep control as technical indicators barely corrected extreme overbought conditions before paring their declines. In this last time-frame, the pair remains well above bullish moving averages
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