The easing of trade tension helped accelerate the Australian dollar's recovery and it has strung together the first back-to-back weekly advance since January, points out the research team at BBH.
“It had taken the better part of two weeks to carve a low near $0.7630. As recently as April 9 it was near $0.7650. Before the weekend it briefly traded above $0.7800 for the first time in nearly a month. It was rebuffed ahead of the 61.8% retracement of the leg down that began in the in middle of March. The technical tone would deteriorate if the Aussie were pushed back below the $0.7740 area.”
“We had previously noted that the Australian dollar was testing a three-year-old uptrend against the New Zealand dollar (~NZD1.05). The trendline has remained intact even if marred, and the technical tone is improving. A move now above the 20-day moving average (~NZD1.06) could boost confidence that a durable low is in place. Short-term participants see the Kiwi is as more immune from the trade wars than the Aussie, making the cross a trade play.”
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 securities. 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 Forex 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.