(DAILY NOTION) AUD/USD Gained Strong Traction Broke 0.7600, Highest Since 2018, Next Mover: U.S. Economic Data

Illustration photo of AUD/USD daily chart from Tradingview

During the Asian session on Wednesday, AUD/USD is currently trading at around 0.7650, gained strong traction, pushed the pair to the highest level since June 2018.

Reserve Bank of Australia (RBA) Governor Philip Lowe said that Australia's economic growth is expected to be solid in the December quarter. Australia's labor market is recovered faster than expected due to the easing in coronavirus restrictions and a rebound in consumer spending.

Investors will be looking at the U.S. stimulus checks and remained optimistic about the possibility of additional financial aid. Along with this, it undermined the greenback with expectations that President-elect Joe Biden will push for more support measures. Other than that, the U.S. treasury secretary announced that qualified Americans could begin receiving the direct stimulus payment of $600 from Tuesday night.

This lead to the AUD/USD pair being pushed to the 0.7650 area, beyond the previous swing high. Stochastic RSI indicator touched the oversold area and it is possible to gain additional upward momentum in the short-term in case the right catalysts emerge. A strong positive move within the AUD/USD will also attract some buying signals. Move ahead, investors will focus on the U.S. economic data such as the good balance trade, Chicago PMI, pending home sales that will have an impact on the pair where sentiment might influence the price movement.

FOLLOWME AUD/USD Overall Sentiment (As of 04:20 p.m., Dec 30, 2020),

Short - 36.18%

Long - 63.82%