AUD/USD is buying and selling on the highs for the day round zero.7239
Markets aren’t precisely danger on in the intervening time however that is not stopping the aussie from pushing ahead in opposition to the remainder of the foremost currencies bloc forward of European markets open. Regardless of the lackadaisical sentiment in markets, there is not something to recommend unfavourable tones both so motion thus far has been very a lot reliant upon flows and technicals.
AUD/USD, worth has began to maneuver larger earlier at this time after the draw back transfer stalled across the 20 November lows. Patrons at the moment are trying to check the 100-hour MA (pink line) as soon as once more after sellers regained near-term management within the pair throughout US buying and selling yesterday.
With loads of potential headlines nonetheless to return in the course of the week that might bitter danger sentiment, it is laborious to see markets get too excited a couple of danger on rally within the coming days. The important thing merchandise on the agenda for danger this week is the Trump-Xi summit and that solely hits on the weekend.
As talked about yesterday, it is laborious to see AUD/USD rally too far, too quick contemplating that the September excessive @ zero.7315 stays a key resistance stage to interrupt above. Even yesterday’s day by day shut failed to carry above the 100-day MA (pink line) which means that patrons are additionally missing conviction to construct on a transfer larger.
That is suggestive that any rallies within the near-term by AUD/USD will stay short-lived so long as the danger of the Trump-Xi summit nonetheless looms. The important thing near-term technical ranges above are good areas to lean on for fading mentioned rallies. As for an upside break, the zero.7315 stays the road within the sand with the month’s excessive @ zero.7338 to function any affirmation of a break.