- Risk-on persists in full swing, underpinning sentiment around higher-yielding currencies such as the AUD.
- Broad-based US dollar weakness also aids the ongoing recovery in the Aussie.
- Focus today remains RBA Kent’s speech later in the European session ahead of the US economic data due to be reported in the NA session.
- Technically we fell upticks should be used as opportunities to go short.
- Intraday we see some upside in the pair. A reversal intrend can be seen only on break out above 0.7461 (50% Fib).
- Major support levels - 0.7386 (61.8% Fib), 0.7311 (Nov 21 low), 0.7280 (78.6% Fib)
- Major resistance levels - 0.74, 0.7461 (50% Fib), 0.7486 (10-DMA)
Recommendation: We would wait for upticks to go short.
FxWirePro's Hourly AUD Spot Index was at -16.4071 (Neutral), while Hourly USD Spot Index was at 27.4778 (Neutral) at 0515 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
