AUD/USD: holding above 0.7600 despite sour news

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7607

Aussie's strength is becoming more evident at the beginning of the week, as the AUD/USD pair trades above the 0.7600 figure despite some bad news in Australian and an intraday slide towards 0.7584. RBA Governor Lowe spoke overnight, and while he cheered signs of pick-up in employment, he also warned that political opposition to reform energy investment and climate policy could reverse the ongoing growth. Additionally, Moody's rating agency cut the long-term credit rating of the big four Australian banks down to Aa3 from Aa2, amid "elevated risks" in the household sector, triggering the short-lived downward knee-jerk.

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The bounce was also backed by the positive tone surrounding equities and oil. From a technical point of view, the 4 hours chart shows that the price is holding above its 20 SMA, while the Momentum indicator bounced modestly from its 100 level, holding below early highs, as the RSI indicator retreats within positive territory, indicating that the pair may ease further short term during the next few hours, without actually affecting the ongoing bullish trend. To confirm further gains, however, the pair would need to surpass last week's high of 0.7635, with scope then to test the 0.7700 region.

.Support levels: 0.7580 0.7550 0.7520

Resistance levels: 0.7635 0.7680 0.7710

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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