Tops Out At April High

AUD/USD continued to rise despite the greenback bottoming out in the European morning, the pair rose as high as 0.7816, matching its April high hit on April 20, before pulling back slightly. The pair last trades at 0.7799.

• Western Australia emerges from a three-day lockdown today, as scheduled, there were no new community cases of COVID-19 during the period.
• CBA remain positive on AUD based on commodity prices: "The gathering momentum in the global economy is a positive for commodity prices and 'risk' currencies such as AUD and NZD. Iron ore prices lifted to the second highest since February 2011. China is the major destination for Australian iron ore. Its infrastructure build‑up is partly responsible for sky‑high iron ore prices. The US's proposed infrastructure plan is unlikely to add much extra demand to iron ore and therefore AUD."
• From a technical perspective AUD/USD is firmer but still trading within its recent range. A recent climb resulted in a break of trendline resistance drawn off the Feb 25 high and price is back above the neckline of a recent head and shoulders reversal. A pullback if seen, would expose support at 0.7635, Apr 14 low where a break would reverse the current bullish cycle. Key resistance and the bull trigger remains 0.7816, Apr 20 high. A break would open 0.7849, Mar 18 high.
• A limited economic docket again today, ANZ Roy Morgan Weekly Consumer Confidence hits the wires at 0030BST/0930AEST.