- Aussie gains for the second-day in-a-row versus US Dollar, resumes upside.
- AUD/USD heads for the highest close since late-April, test 100-day MA.
The AUD/USD pair gained momentum and broke above 0.7000 during the European session. After the beginning of the US session, it rose further and printed a fresh 8-week high at 0.7037. Currently trades at 0.7030, up 40 pips for the day.
The key driver of AUD/USD today has been lower US yields and also an improvement in risk appetite. Equity prices are posting gains across the world. In Wall Street, the DOW JONES gains 0.48% and the NASDAQ 0.59%.
Commodity-link currencies are higher versus the US Dollar. Still, the DXY is up 0.09% on Wednesday. Data from the US did not affect markets. Regarding employment data, the private payrolls measured by ADP showed a gain of 102K in June below the 140K expected while the ISM non-manufacturing PMI came in at 55.1 in June, also missed consensus of 55.9. Activity volume will likely trend lower ahead of the July 4th holiday and will be back to normal probably next week. Before that, on Friday, the NFP is due.
Key Levels
The AUD/USD pair tested today the 200-day moving average that stands around 0.7035. A consolidation on top would point to further gains in line with the main trend. Technical indicators are biased to the upside.
Over the next hours, if AUD/USD is rejected again from above 0.7020/30, it could signal some exhaustion to the upside, increasing the odds of a bearish correction. Support levels might be seen at 0.6990 and 0.6955 (weekly low).
Share
