AUD/USD aiming for 0.7900 in the near-term
The aussie is in a buoyant mood today after better China manufacturing PMI numbers earlier in the Asian session here - and the positive tone in equity markets and higher commodity prices (iron ore prices are at 10-week highs) are not doing the currency any harm at all.
AUD/USD is trading near session highs now at 0.7840. The high on the day is at 0.7843. If you look at the daily chart, the pair surpassed the 50.0 retracement level at 0.7815 today (which served as a temporary cap over the past two trading days).
But here onwards, there's really not much to stop the pair from moving higher. The next pocket of resistance falls near 61.8 retracement level and the psychological level from last October's high. That's between 0.7888 and 0.7900.
While liquidity in markets remain thin (some markets are still on holiday today), the year-end theme is still continuing and the upturn in the pair since mid-December shows no signs of waning just yet. And that could be enough to drive the pair towards the 79 cents level this week.
