The Australian dollar took only a temporary break from the rally and now breaks higher: the pair is at the highest since late August, when it crashed during the Chinese crisis.
It climbed above the 0.7277 level seen after the Fed decided not to raise rates in September. The break is not confirmed yet.
AUD/USDÂ factors
- The Australian dollar enjoys recovering copper prices alongside other commodities. Copper hurt the Aussie and now helps it.
- In addition, we had the not-so-hawkish meeting minutes from the Fed to weigh on the US dollar.
- The Chinese stock market is also looking good with rises at the moment. There was fear that the reopening of markets would see stocks fall, but so far Chinese stocks are just catching up with the rest.
- The weak rise in Australian home loans didn’t stop the pair. They rose only 2.9%.
AUD/USD levels
Above, we have real resistance only at 0.7440, a line that capped the pair several times in July. This is of course followed closely by the round level of 0.75 – mentioned by RBA Governor Glenn Stevens in the past.
Further above, 0.7533 is weak resistance after supporting the pair in March. 0.7570 was the low in June. Even higher, 0.7840 and 0.79 are strong lines.
On the downside, the round level of 0.72 provides support, and it sis followed by 0.7090 and 0.7040. Below the round level of 0.70, the double bottom of 0.6935 is one to watch.
More: AUD/NZD set to trade lower – Credit Suisse
