The US dollar’s April reversal continues, helping AUD/USD break ranges to the top side. Australia’s booming economic data helps the bullish case but it may be too soon to count the big dollar out, as reported by Westpac.
Australia’s economic data continues to impress
“After last week trading the tightest weekly range since November, AUD/USD finally broke out on Wednesday and probably in the ‘right’ direction. A basket of Australia’s key commodity prices has been ticking higher, helping our short-term A$ fair value estimate to a 5-week high around 0.7850 mid-point.”
“Australia’s data continues to reinforce the case for upside. NAB March business conditions hit a record high, Westpac April consumer sentiment reached a 10 year high and job creation yet again smashed consensus in March. Hours worked are now above pre-pandemic levels and the 71k jobs gain cut the unemployment rate to 5.6% despite a record high participation rate.”
“With global risk appetite resilient and DXY price action unimpressive, AUD/USD should extend gains towards 0.7775, finding buyers around 0.7670/80.”
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