Since Friday’s heavy descent, it is assessed the bulls are slowly moving in at the start of the week after Monday’s bullish Japanese daily candlestick could influence further upward momentum.
The Australian Dollar initial weakness on Friday was triggered by the spread of the newly-discovered Omicron COVID-19 variant.
Meanwhile, Moderna shares jumped +12%, adding to their gains after the stock surged more than +20% on Friday.
The biotech company has said it is working to rapidly advance an Omicron-specific booster candidate.
Looking ahead to this week, Australia will be releasing data on GDP, retail sales while eyes turn to the release of the U.S. jobs report (Non-Farm Payrolls report) for November.
Based on the daily technical chart, the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator is negative but gaining momentum, while the Moving Average Convergence Divergence (MACD) displays bullish divergence.
Any weakness is expected to see the bulls intercept the challenge from the US$0.7115 region.
Technical traders will be closely watching for any renewed momentum, along with keeping watch on the US Dollar Index (US DXY), as it holds at 96.12 (as of writing).