AUD/USD up over 2% as dollar fumbles after yesterday's hot start

The pair is trading up to its highest in three weeks, up over 2% against the dollar to 0.6870 levels on the day. But perhaps more importantly, we are seeing buyers take a run above the recent key trendline resistance (white line) as well as the 200-day moving average (blue line), seen at 0.6850:

The 13 December high stands at 0.6893 and if we do see a daily close above the key technical levels pointed out, that's a major win for buyers in search of the next upside leg towards 0.7000.

The positive mood in the aussie is also helped by a more optimistic tone in the equities Equities Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Equities can be defined as stocks or shares in a company that investors can buy or sell. For example, when you buy a stock, you are purchasing equity, thereby becoming a partial owner of shares in a specific company or fund.Equities do not pay a fixed interest rate, and as such are not considered guaranteed income. Consequently, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling p Read this Term space and also by earlier headlines from China here.

Besides that, the surge higher also comes as the dollar takes a plunge across the board as it gives it all back after yesterday's hot start to the new year.