• AUD/USD edged higher on Tuesday as slide in precious metals from gold to silver halted supporting Australian dollar.
• Liquidity across most markets remained in a holiday-shortened week, which exacerbated volatile price swings in silver and other precious metals overnight.
• Continued gains across commodities, especially gold and copper both of which are major export earners for Australia have supported the Australian dollar.
•Price of gold bounced 0.7% on Tuesday, after losing 4.4% overnight. Silver also rebounded 3%.
• Looking ahead to the next year, the Australian dollar is expected to get some boost from the diverging interest rate outlooks at home and abroad.
• Immediate resistance is located at 0.6731(23.6%fib), any close above will push the pair towards 0.6696(23.6%fib).
• Support is seen at 0.6686(Daily low) and break below could take the pair towards 0.6644(38.2%fib).
Recommendation: Good to buy around 0.6700, with stop loss of 0.6650 and target price of 0.6800
