23rd December 2020 - AUD/USD slides below 0.7550 amid renewed USD strength

Good Morning,

Market Headlines

Wall St was mixed in early trade with the Dow around 0.4% weaker on the day while the Nasdaq was up by a similar margin while the S&P was near flat. News wires reported that the UK’s latest Brexit offer has been deemed as unacceptable. GBP/USD saw a quick dip to 1.3364 but was soon back above 1.3400 on further reports that the EU is willing to accept up to a 25% reduction in UK waters catch. Commodities, Crude -2.3%, Copper -1.7%, Iron ore -3.5% Gold $1862/oz.


AUD/USD: 0.7517 – 0.7569

EUR/USD: 1.2157 – 1.2257

GBP/USD: 1.3305 – 1.3451

USD/JPY: 103.32 – 103.73

USD/CAD: 1.2856 – 1.2933

NZD/USD: 0.7132 – 0.7077

AUD/JPY: 77.82 – 78.24

AUD/NZD: 1.0677 – 1.0702

AUD Thoughts

Risk on mode could continue with Brexit negotiations, US fiscal stimulus announcement, new virus strains and further data out this evening

US November Durable Goods Orders will provide insight into the outlook for equipment investment. Industrial production and the manufacturing PMI both suggest strength in recent months persisted in November. US initial jobless claims is likely to receive heightened attention given some evidence of a turn higher in the figures amidst the current COVID-19 case surge.

AUD/USD losing some of its topside momentum this week after failing to recover through the 0.7600 area over recent days. Liquidity expected to evaporate over coming sessions so don’t rule out some wider ranges with support initially expected in the 0.7480/0.7500 area in the sessions ahead.

Event Risk Data Today

US – Weekly Jobless Claims

US – November durable goods orders

US – November Core PCE Deflator

US – November new home sales

US – December Uni of Michigan sentiment

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