AUD USD nothing more to reach 0.7500
7/1/2016 3:16:14 PM
The AUD/USD pair keep on to develop to its strong point above 100-day SMA and has now moved within noticeable distance of 0.7500 psychological mark ahead of the US ISM manufacturing PMI data. On Thursday, the pair fell below 0.7400 handle on talks of PBOC letting the Yuan to lessen more. The pair, however, recovered quickly and moved back above 100-day SMA area but additional upside was capped on broad USD recovery led by strong Chicago PMI reading. On Friday, in spite of of fragile manufacturing PMI data from China, Australia’s largest trading partner, the pair has managed to build on to its yesterday's recovery and is being supported by a largely weaker USD that is extending support to commodities and commodity-linked currencies - like the Aussie. Strong bullish momentum above 0.7500 handle should pave way for retest of June closing highs persistence near 0.7600 round figure, above which the pair seems all set to expand its bullish momentum in the near-term. On the downside, 100-day SMA, near 0.7435-30 area, now seems to act as instant support. Failure to exceed 0.7500 psychological mark resistance, and a following break below 100-day SMA support, now seems to force the pair to head back towards Brexit-led fluctuate lows support near 0.7300 round figure mark, also coinciding with 50-day SMA area.