AUD/USD: getting above 0.7635/42 is key for the bulls
|Currently, AUD/USD is trading at 0.7582, down -0.04% on the day, having posted a daily high at 0.7588 and low at 0.7580.
Forex today: dollar better bid despite lower yields
AUD/USD has been drifting to the downside from 0.7599 overnight highs with a resurgence in the greenback and despite the data disappointments from the US session. However, for the day ahead, analysts at Westpac argue that there is potential to push beyond 0.7600 to 0.7635.
AUD/USD 1-3 month:
The analysts at Westpac, on a longer term outlook, explained that the resilience of US equity markets to the distractions of the Trump administration is a positive backdrop for risk-sensitive AUD. "Chinese markets are of course less helpful as the deleveraging push continues, but the uptrend in steel prices suggests potential for recovery in iron ore prices. The rebound in Australian job creation keeps RBA rate cut talk at bay. But multi-month, we expect the ongoing rise in US interest rates to chip away at AUD/USD, leaving it around 0.73 by Q3."
AUD/USD levels
AUD/USD has stabilised at mid-channel having eased back in the middle recently, however, analysts at Commerzbank suggest that, very near term, we are likely to see a rebound from the 200-day ma at 0.7530:
"Above 0.7635/52 will target the top of the triangle at 0.7712. The market is expected to find support at the 200-day ma at 0.7530 and the 55-day ma at 0.7494. Longer term outlook is neutral in the converging range: It is sidelined within the 0.7342-0.7712 limits. Where are we wrong? Above 0.7635/42 should trigger a move to the top of the triangle at 0.7712. Below the 55-day ma targets the bottom of the triangle at 0.7342."
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