AUD/USD is currently consolidated as bulls take a rest after a big triumph over the last couple of weeks, rallying from the 0.71 handle and scoring 5 big figures to reach highs of 0.7527.
AUD/USD has been better bid with a recovery in the commodity sector, despite the weakness in the trade balance in the Chinese economy , the Aussie’s largest trading partner. “AUD/USD whipped around mostly between 0.7440 and 0.7510, but overall softened about 50 pips between early London and late NY, to 0.7455. Spot iron ore was only slightly weaker, at $57.92/tonne, while May16 Dalian futures closed -1.1%,” explained analysts at Westpac.
AUD/USD levels
AUD/USD is technically holding above the 0.74 handle. The upside is technically overdone and a period of consolidation is in order unless bears fancy a pop at the downside and a long squeeze would target the base of the weekly cloud at 0.7378 as last stop before the 200 dma at 0.7249
(Market News Provided by FXstreet)