The AUD/USD Holding Strong Ahead of Data
The AUD/USD continues to push into resistance, despite a turnaround in the USD. Last week all the action was in the Greenback. As negative headlines hurt the USD and pushed the Aussie higher.
To start the week, we saw a bit of a rebound in the USD and you would have expected to see the Aussie fall away. That wasn’t really the case as the Aussie is trying its best to push into the 0.7500 area.
Today the main numbers are business confidence and Chinese inflation. Economic conditions aren’t great in Australia as reflected by a falling AUD/USD. Certainly relative to what we are seeing in the US.
We also get Chinese inflation, which will be an important number given Australia’s reliance on Chinese exports.
Aussie Outlook
The AUD/USD is pushing towards major resistance at 0.7500 although there is still plenty of work to go to break through there.
I would think that if the USD can rally further the AUD will have a hard time of it.
I expect us to stay below 0.7500 for the rest of the year and any tests will be met by strong selling pressure.
Fundamentally, I just can’t see how the Aussie can trade at a level any higher, given the fact that the US is going so well.
AUD/USD – 240 min Chart.
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