- AUD / USD is rising at the beginning of the week.
- The USD sell-off remains intact ahead of the US PMI data.
- Wall Street seeks to extend the rally on the first trading day of 2021.
The pair AUD/USD it gained over 100 pips in the final week of 2020 and retains its bullish momentum on Monday. At the time of writing, the pair is trading just below the multi-year high it has set at 0.7743, up 0.42% on the day.
The DXY index remains on the defensive
During the Asian session, Australian data showed Commonwealth Bank manufacturing PMI fell slightly to 55.7 points in December. Although this figure fell short of the market expectation of 56, it has had little to no impact on the AUD’s performance against its rivals.
On the other hand, selling pressure around the US dollar remains intact at the beginning of the new week. The DXY dollar index posted its lowest weekly close since April 2018 at 89.93 and extended its decline in the absence of important fundamentals that could help the dollar recover its losses. At the moment, the DXY index is down 0.52% on the day at 89.46.
In the second half of the day, IHS Markit will release the December manufacturing PMI for the US.
Meanwhile, major stock indices remain on track to open decidedly higher, with S&P 500 futures rising more than 0.5% ahead of the opening bell. A bullish rally in US stocks could put the dollar under additional downward pressure and help AUD / USD continue to move higher in the second half of the day.
AUD / USD technical levels
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