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Breaks Recent Range In Early Trade


AUD/USD under pressure early on as the greenback moves higher and risk assets get hit. The pair stayed within its recent range on Friday, moving between 0.7760 and 0.7724, the rate has broken this range though, last sits down 11 pips at 0.7723.

  • The trans-Tasman travel bubble is now operational and first passenger flight already took off from Sydney. NZ & Australian PMs issued a joint statement hailing the deal as a "win-win for Australians and New Zealanders." Also on the coronavirus front, Australian officials will meet today to discus an acceleration of the vaccine rollout and alternatives to the AstraZeneca jab.
  • From a technical perspective AUD/USD remains firm following the break of 0.7677, Apr 7 high. The move higher has also resulted in a breach of trendline resistance drawn off the Feb 25 high and note, price is back above the neckline of a recent head and shoulders reversal pattern, suggesting scope for a stronger recovery. An ability to remain above the 50-dma would strengthen a bullish case. Initial firm support is at 0.7635, Feb 14 low. A break would be bearish.
  • There is no local data on the docket tonight; highlights in a fairly quiet data week are the RBA minutes on Tuesday, retail sales on Wednesday and PMI's on Friday.

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