The Australian dollar's resilience to the deterioration in trade and diplomatic ties with its largest trading partner, China, is a sign of intrinsic strength that should ensure its uptrend continues nL4N2G40NK.
As China's insatiable appetite for iron ore, Australia's main export to the country, shows few signs of abating, Aussie bulls have looked past the war of words nL1N2IL01LnL1N2IU2WR and widening trade disputes nL4N2H50IBnL1N2IW03V in recent months.
China iron ore prices are hovering near a record high, having surged 114% year-to-date nL4N2IV3EV on a combination of robust demand and supply concerns.
This will create a budget windfall for the Australian government as it earns record amounts from iron ore exports nNRAdsbkb8.
The trade in iron ore is of vital importance to both nations and hence the chances of it being targeted by either party are negligible, removing a major threat to the Aussie's uptrend nL1N2IH0ATnL4N2IK0MCnNRAdnzhcv.
Unprecedented government stimulus programmes and accommodative central bank policies worldwide should continue to drive the rally in metals and commodities in 2021, with AUD/USD a direct beneficiary.
AUD/USD is headed for a test of resistance at 0.7638, the 38.2% of retracement of the 2011-2020 drop.
A break opens a rally to 0.7910, the 100-month moving average.
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