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Which currency get most fuelled up after the G20? The answer is the Australian dollar. After the weekend, the extensive pull up at the beginning of December enables the pair AUDUSD to open up at 0.73779 during Sydney session. Same stories are told on AUDCAD and AUDNZD. Truce between the USA and China on the trade war dim the tension stacked months long in 2018. US stocks encountered the highest weekly gain in over seven months on the back of speculation the Fed will loosen on the monetary policy after the December rally.
As two of the largest trade partners in the world. The ceasefire agreement on 90-days is the too beautiful to believe for the Oz. Liquidity in the global market can be maintained without further threat from the tariffs charged on the Chinese commodities which will rallied from 10% to 25% at the beginning of 2019. U.S. President Donald Trump and Chinese President Xi Jinping agreed to cease the fight on the trading by halting the imposition of new tariffs for 90 days and a lasting agreement to eliminate the extra tariffs are under negotiation. In exchange, China has to respond positively to the intellectual property theft and imports more agricultural products from the US.&nbsp;
Even though the deal addressed no essential differences mutually , the US stocks take the market positive news and surged. The S&amp;P 500 had its biggest weekly advance since 2011. Then it would be the excellent opportunity to go long in the highly correlated AUD. However, if no structural progress in the following 90 days. Everything will go back to the worst case.&nbsp;
Little information worthy coming from the Australia but the following week shall be quite busy. Manufacturing PMI will be out this Monday and Reserve bank of Australia will determine the rate change of December. GDP for Q3 will also be out on Wednesday. As the Fed leading the trend of slowing down. RBA will possibly signal the same attitude.
Technically speaking, the pair is in the ascending channel to go upward. 20 SMA is diverting from the 60 SMA with a greater gap. Technical readings suggest a extended bullish trend for the currency. But the short-term new high is very close to the August high which will be a hard-to-cross hurdle. The RSI is going to the overbought territory in the 4H chart. It would be reckless to speculate at this level. If the pair breaks the 0.73829 , It would be a good time to enter. On the flip side, the stop loss should be taken on 0.73438.

The post-G20 week will see expanded AUD

Dec 01 2020