- AUD/USD reached fresh multi-year highs on Wednesday.
- USD demand remains weak.
- US data and FOMC Minutes in focus.
AUD/USD advanced in the European session hitting 0.7820 its highest level since March 2018
DXY extends selloff
The persistent softer tone surrounding the greenback and the upbeat market mood helps maintain AUD/USD’s bullish momentum..
The US Dollar Index (DXY), closed lower in the previous two sessions and is now trading down 0.21%at 89.25 as investors price in additional stimulus with Democrats looking to win the majority in the Senate.
Looking ahead the ADP Employment Change, Markit Services PMI and Factory Orders data from the US will be eyed for fresh impetus. The FOMC will publish the Minutes of its December meeting.
Australian Commonwealth Bank Services PMI in December declined modestly to 57 missing forecasts of 57.4 but was largely ignored by market participants.