AUD/USD: higher levels eyed for today, target 0.75 handle
|Currently, AUD/USD is trading at 0.7472, down -0.07% on the day, having posted a daily high at 0.7480 and low at 0.7466.
AUD/USD dropped a handful of pips on the latest potential terror attack news from the UK where it has been announced that there are multiple casualties and fatalities. The dollar is weak across the board though and the demand is back in at 0.7465.
Multiple fatalities reported after explosion at Manchester Arena
The DXY lost the 97 handle and was down on the day lifting the Aussie from 0.7450 to highs of 0.7487. Analysts at Westpac expect that the weakening US dollar continues to lift AUD/USD, towards 0.7500 today.
AUD/USD 1-3 month:
The analyst's longer-term view factors in the modestly weaker than expected Australian CPI outcome that has added yet another factor capping 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 A$ with strong resistance at 0.76. We expect to see it heading towards 0.74 by year end."
AUD/USD levels
AUD/USD: Looking for a run back towards 0.7500
AUD/USD was breaking down the resistance of the April bearish channel and analysts at Commerzbank explained that above the channel (0.7460) will trigger recovery towards the 0.7538 200 day ma and even potentially the top of the triangle at 0.7722.
AUD/USD longer term outlook is negative:
"It is headed to the base of the range offered by the 2016-2017 support line at 0.7301. This is expected to eventually break down targeting initially 0.7161 December 2016 low then 0.7013 the 2001-2017 support line," explained the analysts.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.