AUD/USD is at the highest levels since March, more to come in Tokyo, 0.7712?
|Currently, AUD/USD is trading at 0.7637, down -0.04% on the day, having posted a daily high at 0.7643 and low at 0.7636.
Forex today: stocks rally as does the pound on Carney U-turn, DXY lower
AUD/USD is consolidating the strong performance of overnight on the back of a risk-on environment coupled with positive rhetoric from Central Bank's that damaged the dollar across the board. Metals were in the green again overnight and also have continued to underpin the strength in the Aussie. AUD/USD has run up gains to the highest levels since the end of March business and the strength was underpinned by poor US data as well. US May pending home sales fell by 0.8% when compared to the previous month, while April figure was downwardly revised to -1.7% from previous -1.5%.
For the day ahead the HIA New Home Sales data for April will be keenly watched considering the RBA's focus here. "A better-than-expected reading, however, could fuel the advance in the pair towards the 0.7700 regions,' argued Valeria Bednarik, chief analyst at FXStreet.
AUD/USD levels
AUD/USD Analysis: bullish, 0.7700 now in play
Above 0.7635/52 will target the top of the triangle at 0.7712, according to analysts at Commerzbank. "The market is expected to find support at the 200-day ma at 0.7530 and the 55 day ma at 0.7496." The analysts longer term outlook is neutral in the converging range: "It is sidelined within the 0.7342-.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."
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.