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  |   Technicals

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FxWirePro: AUD/USD holds firm in Asian trade, risk-on ahead of Biden's inauguration supports

AUD/USD chart - Trading View 

AUD/USD was trading 0.39% higher on the day at 0.7723 at around 02:45 GMT, extending previous session's gains.

The pair is extending gains for the 2nd straight session, finds strong support at 21-EMA.

The People´s Bank of China (PBoC) kept Interest Rate unchanged at policy meeting. Loan Prime Rate setting was unchanged with the 1-year at 3.85% and 5 year at 4.65% as expected.

Further, according to government statistics released earlier this week, China's economy expanded 2.3% yoy in 2020. 

Markets focus on Biden’s inauguration speech after Treasury Secretary nominee Yellen called on for bigger fiscal stimulus. 

Stimulus hopes keep risk buoyed and support risk assets. AUD/USD remains bid into the European session.

Major trend is bullish. Pullbacks in the pair have held above 21-EMA support raising scope for further upside. Next bull target lies at 0.7836 (88.6% Fib). Weakness only below 21-EMA.
 

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