/USD Grinds Higher Through Session To Challenge 0.76

AUD/USD continues its climb as we head towards the US session, last at 0.7997, flirting with the 0.76 handle. The pair is buoyed by strong domestic data and prevalent US dollar weakness.

• The MYEFO provided a narrower deficit path vs. the budget that was only issued 2 months ago, although deficit projections remain at historically extreme levels, at least by Australian standards.
• Elsewhere, the Treasurer revealed the latest appointees to the RBA board, both of which were women who currently operate in the corporate sphere.
• It is also worth flagging that a handful of COVID cases in Sydney are garnering attention.
• From a technical perspective AUDUSD is holding onto recent gains and remains bullish. The Dec 2 break of 0.7414, Sep 1 high and former key resistance confirmed a resumption of the uptrend that began Mar 19. Moving average studies are also in a bull mode highlighting current sentiment. The focus is now on 0.7638, a Fibonacci retracement. Key short-term support is at 0.7373, Dec 7 low. Initial support lies at 0.7507 and 0.7427.