Analysts at Brown Brothers Harriman explained that the Australian dollar appreciated every day last week and gained 2.8% against the US dollar.
"The rally carried the Aussie to its best level since April 2016.
A move now above $0.7850 would encourage participants to set their sights on the $0.8000 and possibly the 2015 high near $0.8165.
The rally in recent days has been strong, and the closes have been near session highs. The technical indicators warn against fading the powerful momentum."
"In a previous note, we pointed out a bottoming pattern in the Australian dollar against the New Zealand dollar.
The pattern appears to have been confirmed, and the initial target is near NZD1.0750.
Given the position of the technical indicators, this initial target, which corresponds with a 61.8% retracement of the decline since mid-March, can be overshot and a move toward NZD1.0800-NZD1.0850 may be reasonable."
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