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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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AUDUSD pushes higher with strong momentum

Article By: ,  Financial Analyst
December 10, 2020 4:39 PM
The US Dollar was bearish against most of its major pairs on Thursday with the exception of the GBP. On the US economic data front, Initial Jobless Claims jumped to 853K for the week ending December 5th (725K expected), from a revised 716K in the week before. Continuing Claims unexpectedly rose to 5,757K for the week ending November 28th (5,210K expected), from a revised 5,527K in the prior week. The Consumer Price Index increased 0.2% on month in November (+0.1% expected), from unchanged in October. Finally, the Monthly Budget Deficit contracted to 145.3 billion dollars on month in November (198.5 billion dollars expected), from 284.1 billion dollars in October.

On Friday, the Producer Price Index Final Demand for November is expected to rise 0.1% on month, compared to +0.3% in October. Finally, the University of Michigan's Consumer Sentiment Index for the December preliminary reading is expected to slip to 76.0 on month, from 76.9 in the November final reading.      

The Euro was bullish against most of its major pairs with the exception of the NZD, AUD and CAD. In Europe, the European Central Bank has kept its key rates unchanged and has decided to boost PEPP (Pandemic Emergency Purchase Program) by 500 billion euros to at least March 2022. Separately, the UK Office for National Statistics has reported October GDP at +0.4% on month (vs flat expected), industrial production at +1.3% (vs +0.3% on month expected) and trade balance at 1.738 billion pounds deficit (vs 156 million pounds deficit expected). Furthermore, France's INSEE has posted October industrial production at +1.6% (vs +0.4% on month expected).

The Australian dollar was bullish against all of its major pairs. 

The AUD/USD broke above our first target of 0.75 in Thursday's trading breaking September highs. The pair gained an impressive 91 pips making it the top major pair of the day in terms of performance. Price action is currently above the upper Bollinger band indicating bullish momentum. We have raised our stop-loss to match the 20-day moving average at 0.738 with new targets of 0.765 and 0.777 in extension



Source: GAIN Capital, TradingView

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