The Australian dollar took its time with the reaction to the Chinese rate cut. And after AUD/USD, it received another kick higher from poor US retail sales.
AUD/USD is at a cycle high of 0.8096. Can it settle continue higher?
The hopes for a Q2 recovery after a cold winter proved disappointing once again, at least if we look at US consumption. While the rise for March was revised to the upside, the markets focus on the not too pretty present. And in April, the US consumer took a break and sales remained unchanged.
AUD/USD is now trading above important resistance at 0.8066 and has no big technical impediments ahead. However, the RBA certainly doesn’t like the situation: they have expressed their desire for a weaker Aussie over and over again.
More: AUD/USD: Next Leg Higher Underway?
AUD/USD chart:
