Can 81.50 Hold a Rampant AUD/USD?
Rowan Crosby • 1 min read
The AUD/USD like most of the majors has been on a tear over the past few weeks. Thanks mainly to a plummeting USD, the Aussie, in particular, has been a strong performer. However, as I’ve spoken about we are at a pretty stiff resistance level which should be tough to crack.
In the week ahead the AUD has a few big data points to navigate. On home soil, there is the CPI out on Tuesday.
Last week we saw the NZD/USD put in a less than impressive CPI reading and it got an almighty smack. There must be a few around Australia who are a little nervous.
And of course, we have the big data points out of the US. The FOMC Statement and the employment report on Friday. The USD has been exceptionally weak and these two releases will have a big impact on the USD.
On a longer-term timeframe, we can see that the AUD has run into the 0.8150 level on a number of occasions. This is, in fact, the third time and on each occasion, it has fallen away.
That gives me confidence that this is a significant level. However, should we get pushed through by fundamental data then there is every chance that we are going to breakout and drive significantly higher.
So everything is focused on the numbers this week. Any hint of a fundamental drive and I will be buying. If the fundamentals don’t play out, 0.8150 has a chance to hold-up once again.