AUD/USD bulls capped at 0.7650, too much too soon?
|Currently, AUD/USD is trading at 0.7632, up 0.19% on the day, having posted a daily high at 0.7656 and low at 0.7587.
AUD/USD rallied from below the 0.76 handle up to current aforementioned highs, supported by a risk-on recovery on Wall Street and higher metal prices.In particular, Iron ore recovered after the sharp slide seen recently. Overnight, RBA's Debelle did not give any further clues into the Central Banks policy outlooks but there is mounting pressure on the Aussie due to conflicting views among local economists into the rate outlook.
Gold finally gives in to the risk-on environment, breaking key ascending support line
Meanwhile, the dollar is also performing on the positive side, slowing down the pace of the Aussie's advances. There has been a number of supporting factors for the higher greenback with a surge in consumer confidence. The Consumer Board Consumer Confidence Index rallied to125.6 smashing expectations of a114 print. At the same time, markets received further hawkish comments from Federal Reserve officials. Chicago's Fed President Charles Evans and Dallas' Federal Reserve Bank President Robert Kaplan both advocated for further rate hikes this year.
AUD/USD levels
Valeria Bednarik, chief analyst at FXStreet explained that the short-term picture presents a modest upward potential:
"In the 1 hour chart, the price is above a now bullish 20 SMA, whilst technical indicators are turning lower in positive territory, not enough to suggest further short-term declines."
Valeria's 4hr analyses is showing limited upward potential:
"In the 4 hours chart, the price settled above a bearish 20 SMA, whilst technical indicator entered positive territory, but turned flat, indicating that buying interest diminished after the latest intraday bounce. Overall, the upward potential seems limited as long as the price remains below the 0.7670 region, although a recovery above it could see the pair extending its recovery up to 0.7749, March 21st daily high."
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