AUD/USD maintains trend
Gary Christie December 8, 2020 3:24 PM
The pair pulled back slightly in Tuesday's trading, bullish bias remains: Chart
The US Dollar was bullish against most of its major pairs on Tuesday with the exception of the CHF. On the US economic data front, the National Federation of Independent Business's Small Business Optimism Index fell to 101.4 on month in November (102.5 expected), from 104.0 in October.
On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending December 4th is expected. Wholesale Inventories for the October final reading are expected to rise 0.9% on month, in line with the October preliminary reading. Finally, U.S. Job Openings for October are expected to fall to 6.300 million on month, compared to 6.436 million in September.
The Euro was bullish against most of its major pairs with the exception of the CHF and USD. In Europe, the European Commission has posted Eurozone's final readings of 3Q GDP at +12.5% (vs -11.8% in 2Q). Separately, ZEW survey results of December were released for Germany (current situation at -66.5 vs -66.0 expected, expectations at 55.0 vs 46.0 anticipated).
The Australian dollar was bearish against all of its major pairs.
It was a relatively quiet day in the FX markets. The AUD/USD slipped 14 pips making it one of the worst performing pairs among the majors on Tuesday. The pair broke above a bullish falling wedge continuation pattern with key resistance at 0.742 briefly before pulling back slightly towards its 20-day moving average. The uptrend remains in play. Look for the 20-day moving average to maintain support in the trend towards the next key resistance levels of 0.75 and 0.765 in extension. An ideal overlap support can be seen at the 0.7235 level.
Source: GAIN Capital, TradingView
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