FX News

AUD/USD Transfer

Signs of a potential base forming in the Australian Dollar (AUD), US Dollar (USD) cross look likely with price bouncing off 0.6380 several times over the past year. The reversal off 0.6365 late last week extended into Tuesday with the pair reaching 0.6450, a break past 0.6480 would be reason for a rethink of the overall downside bias in play. Big picture geopolitical uneasiness remains unsettled overall with tensions still reasonably high in Iran/Israel. Still however a mild recovery in equity markets overnight was welcomed by buyers of the big dollar. On the calendar this week is Australian first quarter CPI with predictions of a rise from 0.6% to 0.8% with the y/y number to come off 4.1% to 3.4%. A pickup in the iron ore price from early April’s 98.00 to 108.25 this morning is having a modest impact on the AUD and could continue if Chinese Industrial orders remain buoyant.

Current Level: 0.6460
Support: 0.6400
Resistance: 0.6630
Last week’s range: 0.6360- 0.6492

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