- RBA’s Financial Stability Review buoyed Aussie bulls, AUD/USD extended upside to hit session highs of 0.7726 on the day.
- FSR noted that the Australian financial system remains in good shape and “overall household resilience remains sound, supported by jobs growth and low rates.”
- The Chinese macro updates came in positive, with the GDP figures meeting expectations, while the industrial production, retail sales and fixed asset data outpacing estimates.
- Chinese data kept the sentiment around the Aussie underpinned, next on tap for the pair is the US dataflow due later in the NY session.
- On the Technical side, AUD/USD see strong trendline resistance (both on daily and weekly charts) at 0.7737.
- Momentum is higher, RSI strength seen at 61 levels and major moving averages are biased higher.
- Pair finds immediate support by 5-DMA at 0.7666, while 0.7737 is strong trendline resistance on the upside.
- Breaks above 0.7737 will see further upside in the pair. Test of 0.78 and then 0.7850 levels likely.
Recommendation: Go long on close above 0.7737, SL: 0.7660, TP: 0.7790,0.78/0.7850
