- Broader markets are throwing down the USD, sending the AUD higher up the charts.
- This week has seen a notable lack of data from the Aussie side of things; US Markit PMIs to close out the week’s action.
The AUD/USD is riding a wave of broad-market US Dollar selling as investors take a bold step further into riskier assets as market sentiment recovers from trade war angst and begin to crawl out of safe-havens.
This week saw little of note on the Australian side of things, with the Reserve Bank of Australia (RBA) delivering the standard information that has seen little adjustment for over two years, and while the Aussie’s domestic economy remains a subdued affair with cautiously-bullish notes, the AUD is getting dragged along the rails into recovery territory as the non-USD G10 marketscape takes a step higher.
The Friday calendar is devoid of Aussie data to cap off an already-quiet week, though US Markit PMIs will be dropping later in the day at 13:45 GMT, which could spur some action on the USD-side of things for late Friday.
AUD/USD levels to watch
The Aussie’s rebound this week has the AUD/USD running up into the 0.73 major handle, as well as three-week highs, and Aussie bulls will be looking to cap the week off on a high note; as FXStreet’s own Valeria Bednarik noted: “the technical picture indicates that the bullish potential remains firmly in place and that the current rally could extend on a break above the 0.7300 figure, as, in the 4 hours chart, the pair has held above the 61.8% retracement of its latest daily decline, at around 0.7255. Furthermore, the 20 SMA maintains a sharp upward slope above the 100 SMA and en route to surpass the 200 SMA, while technical indicators resumed their advances after a modest correction from overbought readings, with the RSI now accelerating north at around 73.”
Support levels: 0.7255 0.7225 0.7190
Resistance levels: 0.7300 0.7330 0.7360
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