With a modest yield advantage likely to widen as the Federal Reserve maintains its accommodative stance and China data encourage economic optimism, the Australian dollar still has its sights set on levels above 0.7400 versus the broadly weaker U.S. dollar. nL1N2HS0L4
However, China-Australia trade friction and COVID-19 will take the edge off the AUD's climb.
A bearish technical signal on AUD/NZD is brewing, too.
Known as a death cross, the 50-day moving average is closing the gap to the 100-day moving average.
A drop below would complete the signal.
AUD/NZD peaked last week at 1.0759 and has fallen to levels below the 21-day moving average line, 1.0697.
A crossing of the 50- and 100-day moving averages could also coincide with price dropping below the key 200-day moving average, currently 1.0645.
stimulus is now the fundamental focus for risk and commodity currencies as the American political battle shifts to the Senate.
This could have significant bearing on the AUD later on. nL1N2HT0RJ
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AUD/NZD daily candle chart: Click here