Tuesday, January 19

AUD/USD steadies around 0.7600, clings to modest daily gains

  • AUD/USD is trading in the positive territory on Tuesday.
  • Broad-based USD weakness allowed AUD/USD to push higher.
  • Upbeat market mood is providing an additional boost. 

The AUD/USD pair struggled to make a decisive move in either direction on Monday and closed flat. With risk flows staying in control of financial markets on Tuesday, the pair gained traction and was last seen trading at 0.7602, where it was up 0.33% on a daily basis.

USD selloff continues

Coronavirus vaccine rollout, EU-UK trade deal and the agreement on the US COVID-19 relief aid allow the market mood to remain upbeat in the last week of 2020. On Monday, Wall Street’s main indexes surged to new record highs and look to extend the rally on Tuesday with the S&P 500 Futures rising 0.45% ahead of the opening bell.

On the other hand, the greenback stays on the back foot against its major rivals in the absence of significant macroeconomic data releases and helps AUD/USD to trade in the positive territory. At the moment, the US Dollar Index is down 0.35% on the day at 90.03.

Thin trading conditions are expected to persist toward the end of the week and year-end flows could trigger sharp fluctuations, which are likely to remain short-lived.

Credit: FX Street

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