- AUD/USD up amid dollar selling.
- Brexit hopes trigger risk buying.
- UK-France border reopening helps the bulls.
AUD/USD continues its move higher for the second consecutive day and tries to sustain the momentum above 0.7600. In the Asian session, the pair moved higher on a bearish dollar after global risk sentiments turned positive on signs of a Brexit-deal getting hammered out soon.
The Brexit development helped the risk-bulls sidestep the US President’s threat of stalling the 892-billion dollar fiscal-stimulus bill.
Meanwhile, the reopening of the UK-France border pacified the rattled investors after discovering a mutant variant of coronavirus in the UK. The easing of border restrictions signalled to the investors that the situation is under control. The equity markets went up, taking the cue, and the bullishness weighed on the US dollar demand.
Nevertheless, the AUD/USD has to cover a lot of ground to regain the weekly highs, which might not be easy given the low volume environment ahead of the Christmas holidays.
The day ahead for the AUD/USD might be subdued as the economic docket has no major releases lined up. Traders will keep an eye on the Brexit headlines and coronavirus updates for short-term trading opportunities.
At the time of writing, one Australian dollar buys 0.7595 US dollars, up 0.30% as of 08:55 AM UTC.