AUD/USD bulls target 0.7520 and onto 0.7600?
|Currently, AUD/USD is trading at 0.7498, down -0.07% on the day, having posted a daily high at 0.7509 and low at 0.7498.
AUD/USD is resting on the 0.75 handle after a 50 pip rally post the FOMC minutes overnight. The DXY was down as were US 10-yields when the Fed used the term "transitory" in respect to data monitoring.
- FOMC: future balance-sheet policy discussed - Nomura
- US Dollar pushes lower toward 97 on FOMC minutes
This rattled the markets in an otherwise uneventful session making for the extension of the 10 & 21-DSMA rally in Europe from 0.7442 the low. For here, analysts at Westpac argued that there’s potential for a retest of this week’s 0.7517 peak, given the US dollar remains on the back foot. For the day ahead, RBA's Debelle gives opening remarks followed by a panel discussion at the launch of the FX Global Code in London while from NZ: NZD/USD: awaits the budget announced at 0200GMT
- Iron Ore - Modest seaborne export growth continues - Westpac
- Insights: Trump administration’s proposed FY 2018 budget - Nomura
AUD/USD 1-3 month:
Further out, the analysts suggest that the modestly weaker than expected Australian CPI outcome has added yet another factor capping the AUD/USD: "softer commodity prices; a more protectionist stance from US President Trump, and higher US yields if the Fed raises rates in June as we expect. "These leave the AUSD/USD with strong resistance at 0.76. We expect to see it heading towards 0.74 by year end."
4 hours chart
"The price has managed to recover above its 20 SMA that heads now north around 0.7470, and technical indicators bouncing from their mid-lines, but below previous weekly highs. The Australian macroeconomic calendar will remain empty during the upcoming Asian session, with the pair then probably depending on equities, particularly mining-related ones for direction. A stronger recovery is likely on an advance beyond 0.7515 this week high and the immediate resistance," - Valeria Bednarik, Chief analyst, FXStreet.
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