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 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.

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