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AUDUSD probing key resistance

Summary:

  • AUDUSD testing lat year’s high of 0.7835
  • Last week’s closing level was the highest in over two years
  • Today’s data has added further weight to the fundamental reasons to be long this market

The AUDUSD is rising once more today after last week saw a strong gain in the cross. The pair closed on Friday at its highest weekly level in more than two year and today has seen price move above there to test 0.7835. This area marked the high last year and a move above it would be seen as a further bullish development. 

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 The AUDUSD is currently testing potentially key resistance at last year’s high of 0.7835

Overnight Chinese data came in better than expected with both the GDP reading and industrial production beating consensus forecasts. The Australian dollar is typically sensitive to data points from China, however there has been a relatively muted reaction so far.  Also this afternoon the Empire state manufacturing missed forcecasts in the US, so from an economic release point of view both the day’s main events have come out in favour of a higher AUDUSD rate.

Is this a case of a delayed reaction and will the market attempt to breakout before the end of the the US session? Or alternatively could a failure to add to recent gains on supportive data be seen as an indication of exhaustion for the recent move? Tonight’s closing level could be key to answering these questions with a daily close above 0.7835 supporting further gains.

 

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