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(Z1) Off Lows, But Remains Weak


Still Vulnerable

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AUD/USD extended its rally overnight, bringing gains so far this week to 1.55%, the pair hit highs of 0.7427 and hovered around these levels for the duration of the US session, last trading up 4 pips at 0.7420. The rate was underpinned by firm commodity price and a weaker greenback, AUD did underperform other commodity currencies though as evidenced by declined in AUD/NZD and AUD/CAD.

  • From a technical perspective AUD/USD continues to climb. The pair remains above the 20- and 50-day EMAs. Although the recent recovery is considered corrective, the break above these averages does suggest scope for an extension of gains. The focus is on 0.7478, Sep 3 high and a key short-term resistance. Support levels to watch are 0.7226, Oct 6 low and 0.7170, Sep 29 low. The latter is a bear trigger.
  • There are no domestic releases on the docket today, markets look ahead to RBA minutes and NAB business confidence next week.