FX.co ★ AUD/USD Outlook For 8 January, 2021

• Higher greenback threatens AUD/USD rally, but technical correction was likely
• Light economic calendar in Asia-Pacific session puts spotlight on US NFP

The Australian Dollar eased against the US Dollar, likely due to rising Treasury yields and a fundamental strengthening of the Greenback due to the aforementioned political implications from Wednesday's election results. Traders will be watching non-farm payrolls report out of the United States, with 71k jobs expected to be added for December.

As previously mentioned, the Australian Dollar is pulling back versus the US Dollar, but the move does little to threaten the broader rally in AUD/USD. The current technical picture sees prices testing a monthly trend-line( since 2001) around critical resistance level, 0.780 round figure mark . After a sharp rise earlier this week pushed the sentiment-linked cross into fresh multi-year highs a correction is expected.

The Stochastic oscillator remains slightly in overbought territory. In line with recent action, a correction to September 2020 swing high (0.740) may occur before resuming the move higher. Below that November 2020 swing low , 0.700 round figure mark may provide support.