AUD/USD chart - Trading View
AUD/USD has erased early losses and was trading 0.09% higher on the day at 0.7773 at around 05:30 GMT, after closing 0.41% lower in the previous session.
Risk sentiment remains buoyed on expectations of higher US fiscal stimulus after the Blue sweep of the Senate.
However, diplomatic tensions between the US and China are likely to intensify further amid US ambassador's Taiwan visit and US’ delisting of Chinese telecom companies.
For now, improved risk sentiment is supporting gains in the pair, but virus woes and Sino-American tensions to keep upside in check.
Technical studies remain bullish. Momentum studies support gains. Scope for test of 88.6% Fib at 0.7836.
200H MA is immediate support at 0.7693. Retrace below will see more downside.
Looking forward, U.S. Non-farm employment data will be in focus. US political updates will also be watched for fresh impulse.
