- AUD/USD: bulls taking charge with a test of the 100-hr SMA.
- AUD/USD: traders will look ahead to the US nonfarm payrolls.
AUD/USD has popped higher to test the 100-hr SMA at 0.7565 making a fresh high for the session at 0.7568. Markets are a little higher in thin trade while the US and N.Korea seek to proceed with the June Summit.
AUD/USD had started out the week with a shallow bid within the broader consolidation while otherwise, the Aussie had been weighed at the end of last week by EM concerns and lower commodities. However, with the Summit back on the cards for June 12th in Singapore, that is good news for China and indeed the Aussie.
A team of U.S. officials crossed into North Korea on Sunday for talks to prepare for a summit between President Trump and Kim Jong Un, as both sides pressed ahead with arrangements despite the question marks hanging over the meeting,
the Washington Post reported.
“Our United States team has arrived in North Korea to make arrangements for the Summit between Kim Jong Un and myself. I truly believe North Korea has brilliant potential and will be a great economic and financial Nation one day. Kim Jong Un agrees with me on this. It will happen!” –
Trump said over the weekend.
The week ahead
Traders will be getting set for nonfarm payrolls, ADP private employment, Wednesday, and also Q1 GDP, second estimate on the same day. The dollar is firmly in demand and the trend in the DXY shows little sign of correcting currently, underpinned by the notion that the Fed will be raising rates again as soon as next month, (Fed fund futures yields slipped a little further on Friday, but still predict a rate hike in June, with another by year-end).
AUD/USD levels
Looking to make a short-term base, technicals have switched again and favor the buyers. So far, the 10-DSMA supports at 0.7537 and RSI rise along with the price. On the downside, the May’s low is eyed, below that target May 2017 low. 0.7500 is key.
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