The Aussie bulls have been showing delivering rock start performance since five days formed a double bottom on the last trading session of February never look back. The cross bounces 384 pips in a week.
The Monday’s calendar was empty except few minor events. Today, at Asia session NAB business confidence, China Trade balance in dollar terms, exports and imports on year on year basis due.
The surge in AUD might bring the RBA in focus for a further rate cut or to prevent the surge of UAD.
Chief market strategist at CMC Markets stockbroking Michael McCarthy said he blamed two key factors for the dollar’s rise.
“One, of course, is that big improvement in commodity prices,” Mr McCarthy said.
“On the other side of the equation, the US dollar has been surprisingly weak.”
In the bonds market, Aussie bonds are performing well. Australia’s two-year bonds pay are now returning close to 2 per cent.That compares with negative yields in Germany, France and, more recently, Japan reported by ABC news.
“The USD is struggling as the data pulse remains strong, but Fed rhetoric remains dovish. This, together with the solid GDP outcome in Australia, is keeping the AUD elevated.” – ANZ Research.
A weekly close above 0.7400 might aim at 0.7530 and 0.7650 levels-activated last week- activated
In the weekly chart, the other swing low finds at 0.7533 levels as of now high made at 0.7485.
In the monthly chart, 20sma seems at 0.7650.
Trading resistance seems at 0.7485, 0.7530 and 0.7600
Support finds at 0.7430, 0.7390 and 0.7340
Also read: Danger of dollar appreciating too much
A daily close below 0.7390 might cap the near term trend until, 0.7530, 07600 and 0.7700 is an open target