FxWirePro: AUD/USD takes cloud top support at 0.7106, weakness only on breaks below
Aussie largely ignores persisting risk-averse market conditions and stages a minor-recovery ahead of the European session. Weak Australian economy data also failed to dent the sentiment around the Aussie, data showed Mel…
Aussie largely ignores persisting risk-averse market conditions and stages a minor-recovery ahead of the European session.
Weak Australian economy data also failed to dent the sentiment around the Aussie, data showed Melbourne institute inflation gauge slipped 0.2% m/m in February, the biggest decline since June 2012.
Oil price rebound also likely supporting the recovery in AUD/USD, the pair edges higher from session lows at 0.7108.
Price action broke below trendline support at 0.7120 on Friday. Pair is now trading above the trendline (currently at 0.7120) and close above will see further gains.
Cloud-top at 0.7106 is seen as strong support on the downside, and the pair has held support, weakness seen only on breaks below.
Immediate resistance on the topside is located at 0.7171 (10-DMA) ahead of 0.7178 (5-DMA).
Focus remains on RBA cash policy decision due tomorrow, expectations are for the central bank to hold rates this month.
