AUDUSD: A neutral stance is required
|AudUsd has been confined to a tight range of 0.7426/49, leaving a neutral stance intact.
The momentum indicators are mixed although the daily charts still look mildly constructive, and above Friday’s high we might expect a squeeze back towards minor resistance at 0.7480 and possibly to 0.7500 ahead of the 23 May high of 0.7517. Above here would then look for a run towards 0.7540/45 and eventually to 0.7555 although that remains remote.
On the downside, support will be seen 0.7420/25 ahead of 0.7400/10 and the recent lows at 0.7384/88. Below this would open the way to the 12 May low of 0.7366 and 0.7350 (minor), ahead of the stronger 0.7330 level. Back below the 9 May low of 0.7328 would find little to hold the Aud up until 0.7300 and the rising trend support, at 0.7285, although this seems unlikely to be seen for a while.
A neutral stance is required, although the dailies do seem to hint at slightly higher levels, but the prospect of a soft (even negative) GDP reading next week may well limit any positive momentum. Today’s Building Permits will be closely watched. They are a volatile set of figures, but today’s expectations are for a reading of +3%. China is on holiday
Economic data highlights will include:
Building Permits (Apr), China holiday
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