AUD/USD now higher on the day
Early declines have been erased and AUD/USD is now 29 pips higher on the day to 0.7400. That puts it within easy striking distance of the September high of 0.7413 and a chance to touch the highest since July 2018.
I don’t see any reason this pair can’t get back to 0.8000 in 2021. The RBA was clearer yesterday that negative rates aren’t really on the table and are more of a ‘break in case of emergency’ option. On the present course, that’s less and less likely.
The China tensions are a bit of an overhang but if we’re on the cusp of a multi-year bull market in commodities, that’s not going to matter.