Don't be misled by Friday's slight AUD/USD dip.
Aussie bulls remain in control as the rally from the Nov.
2 low at 0.6990 and the more prolonged uptick from the late-March COVID lows at 0.5510 remains intact.
With vote counting suggesting a Joe Biden presidency is becoming more likely, AUD in particular appears poised to benefit from a new U.S. government that could potentially be less hostile toward China, Australia's largest trade partner.
AUD/USD's rise above 0.7202, the 50% Fib of its 0.7413-0.6990 dip, and the daily cloud top at 0.7210 set the stage for a further rise to its Sept. 16 high at 0.7345 and Sept. 1's 2020 high at 0.7413.
With the Fed expected to remain accommodative as the COVID pandemic plays out, the low-rate environment should weigh on the USD.
Should the pandemic be contained and global growth pick up, the risk-sensitive aussie could also rally further.
The fly in the ointment for the aussie would be a more severe next wave of COVID, which would stir another round of USD safe-haven buying and put Nov. 2's 0.6990 and May 28's 0.6589 lows in focus.
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