FXStreet (Guatemala) – AUD/USD is currently trading at 0.7733 with high of 0.7739 and a low of 0.7731.
AUD/USD is in consolidation of this week’s business as we move in to Asia’s closing session. The major commodity currency has been making a slight recovery this month post May’s downside from 0.8160 business with 0.7843 a high of the month and up from the 0.7600 figure at the beginning of June’s business, looking to settle in between the range.
Besides Greece, which is on going and a tiring topic for both readers and analysts reporting, and while less price action is occurring as a result from on going and interchangeable progress in headlines, we are casting minds away from noise and continue with the theme of a stronger US dollar in the long run, that not only acts a safe haven but the divergence of the banks still remains factual and a driving force in the pair.
Of late, this play has favoured the Aussie as the Fed has downgraded the pace of which rates are likely to rise between now and in to 2017. However, risks in China’s lacklustre outlook may play a part on further downside in the currency, among concerns for the coal and the iron sectors with 0.7200 being a round target vs the greenback that some bears are looking for.
However, Valeria Bednarik, chief analyst at FXStreet explained that, in the 4 hours chart, the 200 EMA continues to cap the upside around 0.7760, whilst the 20 SMA maintains a slightly bearish slope below the current price, and the technical indicators also hold in neutral territory. “Should the price extend beyond the mentioned EMA, the pair can extend its advance up to 0.7800, but it will take a break above 0.7840 to see a more constructive bullish tone in the AUD/USD”.
(Market News Provided by FXstreet)