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The Aussie continued its surge higher Thursday, reaching a new high against the US Dollar following a number of negative US economic reports. The Aussie was trading at 1.0906, up 0.31% at the time of this writing.

Is the Aussie the a safe investment in the short term?

Here’s a quick update on technicals, fundamentals and community trends.

AUD/USD Technicals

  • Previous sessions: The Aussie traded higher early in the session, reaching its high of the day by mid-morning. The Aussie then gradually consolidated through the rest of the session, reaching its low of the day towards the end of the session and then consolidating to its current level.
  • Technical indicators show a probable correction in the near term as the Aussie is overbought.
  • Current range: 1.0854- 1.0948
  • Further levels: Below: 1.0835, 1.0849, 1.0872 Above: 1.0909, 1.0923, 1.0946
  • AUD / USD likely to find support at 1.0677, and resistance at today’s high of 1.0948.

AUD/USD Fundamentals

  • 02:30   Australia         Private Sector Credit m/m       Exp. 0.4% Prev. 0.5%
  • 13:30   US         Core PCE Price Index m/m       Exp. 0.1% Prev. 0.2%    
  • 13:30   US         Employment Cost Index q/q       Exp. 0.5% Prev. 0.4%    
  • 13:30   US         Personal Spending m/m       Exp. 0.6% Prev. 0.7%    
  • 13:30   US         Personal Income m/m       Exp. 0.3% Prev. 0.3%    
  • 14:45   US         Chicago PMI       Exp. 68.7 Prev. 70.6    
  • 14:55   US         Revised UoM Consumer Sentiment       Exp. 70.0 Prev. 69.6    
  • 14:55   US         Revised UoM Inflation Expectations         Prev. 4.6%    
  • 17:30   US         Fed Chairman Bernanke Speaks

* All times are GMT.

For the major events due later in the week, see the  AUD/USD forecast.

AUD/USD Sentiment

  • The US reported today higher than expected Pending Homes Sales for the month of March, reaching 5.1% up from the 0.7% the month before.
  • The US released a report today showing that the US economy has slowed significantly since the beginning of the year.
  • The US reported today that initial jobless claims rose more than expected last week, increasing by 25,000 more than analysts predicted.

Currensee Community: 52% are short, 48% are long. 278 open positions in real accounts trading this pair at the moment. The community is expecting lower levels of the pair ahead.