FxWirePro: AUD/USD recovers bearish opening gap, struggles at 0.75 handle
Possibility of a hung parliament in Australia caused AUD/USD to open Monday with a bearish gap. The major quickly reversed course as strong upward rally in the commodities prices, particularly gold and silver, lifted the…
Possibility of a hung parliament in Australia caused AUD/USD to open Monday with a bearish gap.
The major quickly reversed course as strong upward rally in the commodities prices, particularly gold and silver, lifted the bids for the resource-linked AUD.
AUD/USD edged higher from session lows at 0.7446 to hit highs of 0.7504 and is currently trading around 0.7490.
The pair unable to extend gains above 0.75 handle, Techs however, support upside in the pair.
Weakness only below 100-DMA support at 0.7440, drag till 0.7345 then likely.
On the upside, decisive break above 0.75 could see gains upto 0.7563 and then 0.76 levels.
Markets ignored mixed data from Australia, with inflation positively surprising, while building consents data came in worse-than-expected.
RBA’s cash rate decision due tomorrow along while Austalia elections outcome remains the key focus this week.
Australian elections over the weekend point towards a potential hung parliament, with the vote count to resume tomorrow.
For lack of conviction on technicals, we prefer to remain on the sidelines for now.
