AUD/USD stays firm, 0.8100 appears closer

The broad-based weakness around the US Dollar is now helping AUD/USD to test new highs in the boundaries of the 0.8080 area.

AUD/USD in 4-month peaks

The pair’s impressive rally remains well and sound today, advancing for the seventh week in a row, or gaining more than 7% since December’s lows in the proximity of 0.7500 the figure.

The greenback stays weak and is dragging the US Dollar Index (DXY) to fresh lows in levels last seen 4 years ago in the area below the 90.00 handle. The buck’s decline has been accelerated after US Treasury Secretary S.Mnuchin favoured a softer USD at his comments at the WEF in Davos earlier in the day.

There are no scheduled releases in the Australian docket tomorrow, while markets will be closed on Friday due to the Australia Day holiday. In the US calendar, US advanced manufacturing/services PMI by Markit along with December’s existing home sales and the usual weekly report on US crude oil supplies by the EIA are due later in the NA session.

AUD/USD levels to watch

At the moment the pair is up 0.84% at 0.8068 facing the next resistance at 0.8103 (high Sep.20 2017) seconded by 0.8125 (high Sep.8 2017) and then 0.8200 (psychological level). On the other hand, a breakdown of 0.7956 (low Jan.23) would open the door to 0.7904 (21-day sma) and finally 0.7844 (200-week sma).