AUD/USD consolidates around 0.7700 level, broadly flat on the day

• AUD/USD is consolidating around the 0.7700 level as the US session draws to a close.
• Some market commentators/analysts attributed early outperformance in AUD to strong trade numbers and positive vaccine news.

AUD/USD has seen two-way trade on the first trading day of the week, initially rallying towards the 0.7750 mark from Asia Pacific opening levels in the 0.7710s, before then briefly falling back beneath the 0.7700 level during US trading hours, around which area spot prices have proceeded to consolidate.

On the day, AUD/USD trades broadly flat. Trade volumes are dropping off now the US session is coming to an end, but will likely pick up soon on the arrival of Asia Pacific market participants.

Australia update

Some market commentators/analysts attributed early outperformance in AUD to strong trade numbers and positive vaccine news.

On the former; the Australian Bureau of Statistics released its preliminary trade numbers for December; the data showed exports rising a staggering 16% MoM versus a 9% MoM drop in imports, pushing the trade surplus to AUD 8.96B.

On the latter; Australia approved the Pfizer/BioNTech Covid-19 vaccine for use on Monday, with vaccinations to begin in late February at a pace of 80K per month. Meanwhile, the country has reported no new Covid-19 cases in the past seven days and there are now no Australians in hospital ICU beds.

Somewhat more negatively, the country did on Monday abruptly decide to suspend its travel bubble with New Zealand for 72 hours and ordered all those who arrived after 14 January to self-isolate and be tested after the latter country found its first community case of Covid-19 in months.

AUD/USD key levels