AUD/USD Price Analysis: Refreshes fortnight top near 0.6750 on RBA optimism, US NFP eyed
- AUD/USD takes the bids to refresh two-week high during five-day uptrend.
- RBA SoMP defends hawkish surprise by citing inflation woes; Fed’s dovish rate hike adds strength to Aussie pair’s run-up.
- Clear upside break of multi-day-old resistance line, now support, defends pair buyers.
- US employment report for April bears downbeat forecast, can please pair buyers on matching expectations.
AUD/USD pierces an 11-week-old resistance line amid broad US Dollar weakness, as well as due to the hawkish signals from the Reserve Bank of Australia (RBA), during early Friday. In doing so, the Aussie pair rises to a fresh high in two weeks, around 0.6735 by the press time, as market players await the key US jobs report for April.
That said, RBA’s quarterly Statement on Monetary Policy (SoMP), also known as the Monetary Policy Statement (MPS), showed readiness for further rate hikes and defended hawks after surprising markets with a 0.25% rate lift earlier in the week. Also positive for the AUD/USD pair were the upbeat economic forecasts and statements citing inflation fears in the Pacific major, not to forget hopes for China’s upbeat economic growth.
Also read: RBA Monetary Policy Statement: Further rate hikes may be needed
Technically, the Aussie pair crosses a downward-sloping resistance line from the mid-February, now immediate support near 0.6725.
Adding strength to the upside bias is the strongest bullish MACD signal in three weeks, as well as an upbeat RSI (14) line, not overbought.
With this, the AUD/USD bulls appear well-set to refresh the multi-day high by approaching the 100-DMA hurdle of around 0.6790. Following that, April’s peak of near 0.6810 may gain the market’s attention.
On the flip side, a daily closing below 0.6725 will nullify the trend line breakout and can drag the Aussie pair towards a convergence of the 50-DMA and 21-DMA, close to 0.6680-85 as we write.
It’s worth noting that a one-week-old ascending trend line, around 0.6655, acts as an extra filter towards the south before giving control to the AUD/USD bears.
AUD/USD: Daily chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
