AUD/USD: bulls eyeing 0.77 and recent highs 0.7740
|AUD/USD is testing the bear's commitments at the resistance of 0.7680 is a progressive grind higher albeit within a tight range at the start of this week.
AUD/USD bulls lost some momentum last week, but are making a bullish start to the week and a break through 0.7700 would set the tone again for a reversal of the correction at 0.7740. The focus stays with the Fed, Trump, the dollar and the RBA.
RBA governor’s recent testimony showed high hurdles to easing and these include potentially higher household debt, as explained by analysts at TD Securities who suggested would only be pushing house prices higher and affecting household spending. "Our Nov hike will be pushed out into 2018 if incomes and composition of employment do not strengthen in coming months."
Trump will be in focus this week - ANZ
Meanwhile, for the week ahead, attention will be with Trump and the US calendar to start before Aussie GDP and China manufacturing and non-manufacturing data pulses.
AUD/USD levels
Valeria Bednarik, chief analyst at FXStreet explained that the daily chart shows that the price converges with a bullish 20 SMA around 0.7670, whilst technical indicators eased within positive territory, with not enough directional Momentum. "Shorter term, the 4 hours chart shows that the price is below its 20 SMA and that it has broken below a daily ascendant trend line coming from January 27th low of 0.7511, currently around 0.7680. In the same chart, technical indicators have turned flat after entering bearish territory, limiting chances of a downward move, unless the price accelerates below 0.7640, the immediate support."
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