- AUD/USD fits itself in a narrow range.
- Trump lifts markets with an unexpected move over the weekend.
- Holiday season affects volume.
AUD/USD sheds its gains made in the early European session and moved into the red, down 0.05 Percent to trade near 0.7595 just ahead of the US market open. The intraday move saw the pair registering a high of 0.7623 before the slide.
The US President Trump’s unexpected signing of the relief bill triggered a risk-on rally across the globe and dollar selling. The successful agreement between the UK and the EU regarding the trade terms after Britain’s exit from the EU also gave momentum to the bulls. Brexit-deal signing on the Christmas-eve after months of negotiations, after the talks many a time earlier moving into the precipice of complete failure, relieved the risk-bulls.
The low-volume trading environment due to the ongoing holiday season prevented any significant moves in the market. The risk-on money flow pushed the AUD up, only to find a lack of follow-up buying.
S&P 500 futures trades with a 0.73 Percent gain to touch 3,722; DXY is slightly in the red at 90.26.
The US and Australian economic docket are light ahead without any significant releases, and the AUD/USD might play-out a sideways trading action today.
At the time of writing, one Australian dollar buys 0.7588, down -0.07% as of 02:05 PM UTC.