AUD/USD consolidates the rally near 0.7800

• Correction in copper & gold prices to cap the upside?
• 0.7825/30 target still in sight.
• USD weakness amid thin trading to persist.

The bulls appear to take a breather after a week-long winning streak, leaving the AUD/USD pair in a brief phase of consolidation near nine-week tops of 0.7810.

AUD/USD: Bullish bias to extend into the New Year?

The Aussie defends minor bids on the final trading day of 2017, although remains within the striking distance of the multi-week tops reached just ahead of the 0.78 handle.

The spot stalls its upside largely on the back of a minor correction seen in gold and copper prices, which puts a lid on the resource-linked AUD. However, the major finds support from the fresh selling seen in the US dollar alongside Treasury yields.

Also, upbeat Australian private sector credit data continues to underpin the sentiment around the Aussie. Australia Private Sector Credit (MoM) registered at 0.5% above expectations (0.4%) in November.

There is nothing of relevance, in terms of macro news, to be reported in the day ahead and hence, light trading and USD dynamics will continue to remain the key driver influencing the pair.

AUD/USD Technicals

Valeria Bednarik, Chief Analyst at FXStreet noted: “Technical readings in the  4 hours chart also support the case of a bullish extension, as the 20 SMA continues advancing below the current level, now converging with the mentioned Fibonacci support, while the RSI indicator stabilized within overbought territory, as the Momentum indicator keeps grinding higher well into positive territory. Support levels: 0.7745 0.7710 0.7680. Resistance levels: 0.7810 0.7845 0.7895.”