AUD/USD: further consolidation on the 0.79 handle expected before CPI tomorrow
|Currently, AUD/USD is trading at 0.7923, down -0.01% on the day, having posted a daily high at 0.7927 and low at 0.7921.
AUD/USD is consolidated after the overnight sessions where not a great deal of business went on in the markets, awaiting the week's schedule to fall in later during the forthcoming sessions. The Aussie will be in for a potential ride in the CPI data tomorrow, but for today, analysts at Westpac suggest that further consolidation between 0.7850 and 0.8000 is to be expected.
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AUD/USD 1-3 month:
"Much of AUD/USD's gains have been driven by broad US dollar weakness. But there has also been a partial recovery in Australia's key commodity prices, after very steep declines in April and May," noted the analysts, adding, "However, beyond multi-week gains, a firmly on hold RBA is likely to keep a lid on AUD/USD, easing to 0.74 by year-end."
AUD/USD levels
AUD/USD is poised to encounter its 200-week ma, analysts at Commerzbank argued. "Last week we saw the market halt just ahead of the 0.8011 200 week ma and very near term there is a 13 count on the daily chart and a TD perfected set up on the weekly chart and we suspect it has started to correct lower. Currently, the corrective zone is indicated to be circa 0.7820-0.7750. While above the uptrend at 0.7661 we will assume it is capable of further gains. Above 0.8011 targets the 0.8162/66 May 2015 peak and 50 % retracement, " the analysts explained.
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