The Aussie traded higher Monday, continuing its rally against the Greenback for the second day in a row on expectations that the RBA will raise interest rates and helped by a stronger Euro. The Aussie was trading at 1.0727, up 0.22% at the time of this writing.
Here’s a quick update on technicals, fundamentals and community trends.
AUD/USD Technicals
- Previous sessions: The Aussie climbed slightly in the early part of the session, after which it began a gradual decline into the early afternoon, and then falling more sharply dropping to its daily low of 1.0713 before consolidating to its current level.
- Current range: 1.0698 – 1.0787
- Further levels: Below: 1.0683, 1.0696, 1.0712 Above: 1.0741, 1.0754, 1.0770
- AUD / USD likely to find support at 1.0577, and resistance at Wednesday’s high of 1.0876.
AUD/USD Fundamentals
- 02:30 Australia Trade Balance Exp. 0.49B Prev. -0.21B
- 10:30 Australia Annual Budget Release
- 13:30 US Import Prices m/m Exp. 1.8% Prev. 2.7%
- 14:30 US FOMC Member Duke Speaks
- 15:00 US IBD/TIPP Economic Optimism Exp. 41.5 Prev. 40.8
- 15:00 US Wholesale Inventories m/m Exp. 1.0% Prev. 1.0%
- 22:00 New Zealand RBNZ Financial Stability Report
* All times are GMT.
For the major events due later in the week, see the AUD/USD forecast.
AUD/USD Sentiment
- The RBA announced last week that it may need to increase interest rates in the future to maintain its inflationary targets.
- The Bank of Japan reported today that the Japanese economy is under downward pressure following the recent natural disasters to shake the country.
- Investor appetite for risk increased Monday following a positive US report last Friday that private sector payrolls increased the most in the last five years with figures for April at 244,000, higher than the expected 185,000.
Currensee Community: 52% are short, 48% are long. 261 open positions in real accounts trading this pair at the moment. A slight majority of the community is expecting lower levels of the pair ahead.
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