AUD/USD pares gains from 0.7805 earlier to 0.7780 as we get into European morning trade today
The drop coincided with some trimming in the risk advance earlier on the US-China report here but from a technical perspective, it also comes as buyers run into a test of resistance from the highs of the year around the 0.7800-20 region.
Buyers are still keeping the bullish momentum going but so far, are finding it tough to firmly hold a break above 0.7800 to start the new year.
In the bigger picture, the April 2018 highs around 0.7810-13 is also adding to some resistance but a firm break above that should see 0.8000 in sights next.
As much as the RBA is still keeping a dovish hand, the risk and dollar narratives are still the two key dominant drivers in the market and that is a tough proposition to go up against.
