AUD/USD is currently trading at 0.7700 with a high of 0.7710 and a low of 0.7687.
AUD/USD has recovered from the bearish opening gap that put the pair below the hourly 20 sma and 0.77 psychological handle. The G20 outcome, where world leaders dropped its pledge to fight again protectionism could be weighing on the major commodity currency early at the start of this week, but all in all, the currency remains in bullish territory in the broader scope of the FX space. On the back of the market's turn in sentiment for the US dollar, and as noted by analysts at Brown Brothers Harriman (BBH), the Australian dollar has recovered from the brief dip below $0.7500 on March 9 to test the $0.7700 area:
"Although there were several violations of this ceiling last month, it remains a formidable barrier. The moving averages have crossed and the technical indicators suggest that it is too early to pick a top in the Aussie," argued the analysts at BBH, finishing, "The high from the US election was near $0.7780 and that may represent a good near-term target."
For the day ahead, RBA Assistant Governor Ellis speaks in Canberra while in the US, we have the Feb Chicago National Activity Index that was last at -0.05 which analysts at Westpac suggest that this indicates that the US is now growing at around trend pace. We will then hear from Fed's Evans who is speaking in New York at a business economics luncheon followed by audience and media Q&A.
The recent March high at 0.7718 is the first barrier while the March low at 0.7492 is the same for the downside. On bullish momentum, the 0.7778 and the 8th November high comes after a break of the February high at 0.7740 with a wider objective as being 0.7850 and the 2016 highs. On the downsides wider outlook, 0.7440 and mid-Sep lows guard the 2017 lows at 0.7191.
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