Jan. 5, 2021
Starting the session at 0.7674, AUD/USD rallied above 0.7772 for the first time in 2 years, gaining 93 pips, and is now trading at 0.7767.
The Australian dollar record rate comes as global asset managers are struggling to make sense of what is next in 2021 while 2020 draws to a close, a year hammered by an unprecedented health crisis, with the WHO's declaration of a COVID-19 Pandemic on March 11. Global markets dropped at record speed to uncharted lows and then backed by a flood of central banks , the trend reversed, and markets surged to all-time highs. The Australian currency followed path ending 2020 on a strong note.
Data out yesterday – United States Manufacturing PMI was released yesterday with a figure of 57.1, This is better than the previous number of 56.5. The United States ISM Manufacturing Employment (Dec) released yesterday at 3:00 PM with a figure of 51.5, This is better than the previous number of 48.4.
The Australian dollar's nearest support level is at 0.7628. The Relative Strength Index shows the Australian dollar has gone up above 70 going into overbought territory. At 0.767, Australian dollar made an initial breakout above the 5 day Simple Moving Average. Medium-term trend indication has turned positive as the MACD (moving average convergence divergence) index generated a crossover buy signal. This occurs as the MACD line crosses above the MACD signal line. The CCI indicator is above 100, indicating a possible start of a new uptrend. The Australian dollar has just crossed the upper Bollinger band at 0.774, indicating further gains might be next. Overall, looking at the technical analysis landscape, it seems the Australian dollar is likely to continue pointing upward in the short term.
In the meantime, new year year high for the New-Zealand Dollar is at 0.7215. The Euro rallied beyond 1.2311 for the first time in 2 years. At 1.5836, EUR/AUD is down to its lowest value in 1 year. The Canadian Dollar fell to 1.2675, hitting a 2 year low.
The market is looking forward to United States Crude Oil Inventories projected to outperform the last figure at -1.50 million, while it previously stood at -6.07 million, data will be released today at 3:30 PM. The United States's new ADP Nonfarm Employment Change (Dec) data will be available today at 1:15 PM. Data is expected to decline to 88000 from its previous value of 307000. United States FOMC Meeting Minutes are scheduled to come out today at 7:00 PM. United States Factory Orders look to be getting worse with an expected 0.7 while the preceding figure was 1, New data will be out today at 3:00 PM.
Australian dollar social media highlights: