AUD/USD traded to support earlier in the week and is now poised to test last week's 18-month high at 0.7227.
The concerns over the economic impact of the Melbourne lockdown and state of emergency in Victoria have been overshadowed by broad USD weakness and strong gains in iron ore and gold. nL4N2F60MInL4N2F61FYnL4N2F63ZJ
The AUD/USD fell to 0.7077 on Monday to relieve overbought readings, but managed to hold above good support at 0.7070/75.
The subsequent bounce above 0.7150 has encouraged bulls to establish fresh longs.
The focus shifts back to the U.S. economy ahead of Friday's U.S. non-farm payroll data.
One of the factors behind recent weakness in the U.S. dollar is concerns the U.S. economy faces a bumpy road ahead, and this has been the message from the U.S. Federal Reserve in recent weeks. nL1N2F5153 If the U.S. payroll data disappoints and talks between U.S. Democrats and Republicans on a coronavirus aid package stall, the AUD/USD could potentially break above resistance at 0.7227 and head for the 2019 high at 0.7295.
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