The AUD/USD Testing 0.7300
Rowan Crosby • 1 min read
The rally in the AUD/USD over the last week has been a bit of a surprise, at least to me.
Since we received some positive trade figures, the Aussie has been on an upward trajectory. That has been helped in part by a weaker USD. But even as we saw yesterday, when the USD finished the day around unchanged, the AUD still outperformed.
The RBA didn’t reveal anything new, but I suspect we might have a more positive outlook come the SoMP tomorrow.
A falling unemployment rate might just be the catalyst for a bit more of a hawkish tone. Given that it is a good sign that we are seeing some improvement in the economy.
For me, I’ll be very interested to head what the RBA has to say about the state of the property market. Which to me is the big worry in Australia and what might keep rates low for now.
The AUD/USD is trading just below the major level at 0.7300, after a sharp run-up from where we’ve been recently.
We traded nearly at the 0.7000 level, but since that point, the buyers have come thick and fast.
The channel that we have been in all year, has now been broken as well. That is technically a bullish setup, but picking the point at which we were to breakout was easier said than done.
I’ll be watching the AUD/USD closely over the next 24 hours as we might just see some more upside, if both the USD breaks support and we get a hawkish SoMP.