AUDUSD: Reached a solid resistance

The Aud saw a steady drift higher on Monday, to reach 0.7747 in early European trade before falling back a little to finish the day at 0.7730 ahead of today’s House Price Index and RBA Minutes.

Technically we have now reached the 0.7740 level that we have previously mentioned as being solid resistance. This may continue to be the case although if the RBA show no concern over the strength of the $Aud in today’s Minutes, we are likely to take this out and then quickly head towards the November high of 0.7777. Beyond this then allows a run towards 0.7800 and eventually to the April 2016 high at 0.7834.  On the downside, support will be seen at 0.7700 ahead of the session low of 0.7687, ahead of the 17 March low of 0.7662. Below here looks unlikely in the near term, but further support would arrive at 0.7650 (minor) and at 0.7630. I remain neutral unless we see 0.7740, and in the longer term I think we probably remain in the wide 0.7500/0.7750 range for some time to come.

Economic data highlights will include:

CB Leading Indicator, House Price Index (Q4), RBA Minutes

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