AUD/USD benefits from rally in commodities, China's PMI up next

The AUD/USD has been on a stellar run, posting gains in the last 9 trading days, or 14 out of the last 15, as the broad-based USD weakness extended until the very last day of 2017. At present, the pair trades around 0.78, with volume extremely low. 

Commodity-linked AUD benefits from Oil, Gold rallies

As Valeria Bednarik, Chief Analyst at FXStreet, notes: "A sharp advance in oil and gold prices throughout the last couple of weeks fueled the commodity-linked currency. Australia will open the 2018 macroeconomic calendar with the release of HIA New Home Sales, although a bigger mover for the pair will be the Chinese Caixin Manufacturing PMI for December, expected at 50.6 from previous 50.8."

AUD/USD technicals show bullish readings

Valeria adds: "Technical readings in the daily chart support such advance, as the Momentum indicator consolidates at its highest since July, while the RSI indicator keeps heading higher around 74. In the mentioned chart, the 20 SMA gains upward momentum, now converging with a Fibonacci support at 0.7650.  Shorter term, and according to the 4 hours chart, the upside is also favored, as technical indicators barely corrected extreme overbought conditions before turning flat well above their mid-lines, while the 20 SMA maintains a strong upward slope below the current level."