AUD/USD is bullish but lacks momentum to reach the 0.7500 mark

The AUD/USD pair extended its 2020 rally to 0.7449 last week, ending it a handful of pips below it. The aussie is in desperate need of a bullish catalyst to reach the 0.7500 level, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“The US will publish the December Michigan Consumer Sentiment Index´s preliminary estimate and the final readings of its November inflation figures. Australia will offer December Consumer Inflation Expectations on Thursday.”

“China will release its November inflation data. Tensions between Beijing and Canberra will also be under scrutiny.”

“Given that the AUD/USD pair has had a hard time advancing, sudden dollar’s strength may trigger a corrective decline. Also, profit-taking may hit the aussie if it reaches the 0.7500 figure.” 

“0.7410 is the immediate support level, followed by 0.7370 and 0.7300. Resistances are at 0.7500 and 0.7580.”