• AUD/USD climbed on Tuesday as President Donald Trump’s tariff threat against Europe over Greenland revived “sell America” sentiment, dragging the U.S. dollar lower.
• The dollar faced selling pressure on fears of ongoing instability, strained global ties, and reduced confidence in U.S. leadership.
• Trump has stepped up efforts to claim sovereignty over Greenland from NATO ally Denmark, prompting the European Union to consider retaliatory measures.
• On the data front, Attention now turns to key upcoming data releases. Australia’s December employment report is due on Thursday, with a Reuters poll forecasting job gains of around 30,000 and an unemployment rate holding steady at 4.4%.
• In the U.S., focus will be on third-quarter GDP data, expected to show annualized growth of 4.3%, and November core PCE inflation, forecast at 0.2% month-on-month.
• Immediate resistance is located at 0.6740(Higher BB), any close above will push the pair towards 0.6770 (23.6%fib).
• Support is seen at 0.6701 (38.2%fib) and break below could take the pair towards 0.6661(Lower BB)
Recommendation: Good to buy around 0.6720 with stop loss of 0.6630, and target price of 0.6770
