AUD/USD hits session high above 100-hour MA

AUD/USD has printed high above the 100-hour moving average.
Morrison’s win and uptick in the AUD and stocks indicates incumbent government is seen as better managers of economy.

Omkar Godbole FXStreet Contributor

AUD/USD moved above the 100-hour moving average (MA) of 0.6916 soon before press time, having gapped higher by 30 pips earlier today on Prime Minister Scott Morrison’s surprise win in weekend election.

Morrison’s coalition government was trailing in most opinion polls and a change of guard was widely expected. So, many including Nomura had initiated short AUD/USD trades ahead of elections.

Australians, however, refrained from voting for a change amid a slowing economy, catching both poll experts and markets off guard.

The Aussie dollar opened higher at 0.6890 and has remained bid ever since. Meanwhile, Australia’s S&P/ASX 200 index has jumped to its highest level since December 2007. As a result, Nomura has squared off its tactical AUD short initiated before election, according to Bloomberg.

The response by markets indicates the investors see incumbent government as better economic managers. The AUD, therefore, may continue to gain altitude during the day ahead.As of writing, AUD/USD is trading at 0.6914.

Pivot levels

1. R3 0.6922
2. R2 0.691
3. R1 0.6886
PP 0.6874
1. S1 0.685
2. S2 0.6838
3. S3 0.6814

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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