• AUD/USD edged higher on Wednesday as rising geopolitical tensions continued to weigh on the US dollar.
• On Monday, President Donald Trump’s renewed tariff threats over Greenland triggered a fresh wave of the “Sell America” trade seen after last April’s tariff moves.
• Investors sold US dollar on fears of prolonged uncertainty, strained alliances, weakening confidence in U.S. leadership, possible retaliation, and faster de-dollarisation.
• Looking ahead, investors awaited Australian jobs data this week, with December employment seen rising about 30,000 and the unemployment rate edging up to 4.4%.
• In the U.S., focus will be on third-quarter GDP data, expected to show annualized growth of 4.3%, and November core PCE inflation, forecast at 0.2% month-on-month.
• Immediate resistance is located at 0.6749(Higher BB), any close above will push the pair towards 0.6764 (23.6%fib).
• Support is seen at 0.6703 (38.2%fib) and break below could take the pair towards 0.6656(50%fib)
Recommendation: Good to buy around 0.6730 with stop loss of 0.6660, and target price of 0.6800
