AUD/USD lifted to 0.7696 in early trading after Friday poor NFP data kept the US dollar subdued. However, reports of missile strikes in Syria could weigh in risk sentiment, limiting gains in the pair. Focus this week wil…
AUD/USD lifted to 0.7696 in early trading after Friday poor NFP data kept the US dollar subdued.
However, reports of missile strikes in Syria could weigh in risk sentiment, limiting gains in the pair.
Focus this week will be RBA Lowe's speech on Wednesday after last week's dovish showing from the RBA.
On the data front we have Australia’s business confidence, consumer sentiment and home loan approvals along with US CPI and FOMC minutes which could impact price action.
The pair has been on a downward trajectory since Jan 2018 highs of 0.8135 and we do not evidence any major signs of reversal.
That said, bearish momentum is fading and we see bullish divergence on daily charts which keeps scope for upside.
20-DMA is stiff resistance for the pair. Breakout at 20-DMA could see some upside.
On the flipside, weekly cloud at 0.7642 is strong support, violation there will see further drag lower.
