KEY POINTS OF THE ARTICLE:

• Highlights: The dollar awaits Biden's future policies
• Today's currency: AUD/USD Recovery on the bullish oblique

Currency Table-Time Horizon: Daily

HIGHLIGHTS: THE DOLLAR AWAITS BIDEN
'S FUTURE POLICY The greenback weakened against most major currencies, due to the recovery in equity markets in Asia, which reinforced risk-taking and dampened demand for safe haven currencies like the dollar and the Japanese yen.

The dollar index fell to 90.70 during the Asian session, a day before the inauguration of US President-elect Joe Biden and after the us holiday.

The dollar slipped nearly its highest level in nearly a month on Tuesday, with caution ahead of the testimony of Janet Yellen, nominated for U.S. Treasury Secretary, as traders closely monitor the policies of Joe Biden's new administration.

The Wall Street Journal reported that Yellen will affirm a more traditional commitment to market-set exchange rates during Senate testimony on Tuesday.

This is in stark contrast to outgoing President Donald Trump, who has often criticized the dollar's strength.

Janet Yellen said she will not pursue a weak dollar policy per se, but that does not mean that the overall impact of the Fed's policy will not go in the direction of further weakening the dollar.

The greenback has also been supported recently by an easing of bearish positions, with data showing that hedge funds accumulated the largest net short position since May 2011 in the week ending January 12. Such large positions suggest that traders would be relatively more inclined to reduce their positions than to increase already large bets, which is positive for the dollar in the short term.

For its part, the euro marked a low at 1.2054 above the major support at 1.2000. The recent restrictive measures to fight against Covid in Europe and the fear of seeing them spread to the whole area penalize the single currency.

The Australian dollar is benefiting from the good growth figures in China.

TODAY'S CURRENCY: AUD/USD RECOVERED ON THE BULLISH OBLIQUE
The Australian dollar yesterday marked a doji in contact with a bullish oblique and the 34-period moving average followed this morning by a bullish session. If this positive candlestick were confirmed at the end of the session, then it would be a signal that the consolidation started from the highs at 0.7815 might be over.

Above these two ascending supports the trend is positive and prices could return to the weekly resistance of April 2018. A break in these supports and even more so in the polarity series at 0.7640 would signal the end of the rise that began in November.