AUD USD presented a slight recovery
11/21/2016 10:15:27 AM
Having fallen to its lowest level since June 24, the AUD/USD pair presented a tepid recovery and has managed to defend 0.7305 handle for the time being.
At present trading around 0.7330, the pair USD expanded its recent strong up-move managed by growing expectations of offensive fiscal provocation by Trump administration, which has been driving inflation expectations and Treasury bond yields, finally pushing the dollar higher since the outcome of US presidential election. Furthermore, increasing bets for a December Fed rate-hike action continues to reinforce the dollar and weighing on higher-yielding currencies.
Immediate upside persistence is fixed near 0.7350 level, which is closely followed by persistence near 0.7380 horizontal zone. Momentum above 0.7380 persistence could extend the recovery move beyond 0.7410 handle towards 0.7420 persistence ahead of its next major hurdle near 0.7450 region.
On the downside, constant weakness below 0.7310, leading to a succeeding break below 0.7300 handle, is likely to turn the pair at risk to head towards 0.7230 support area before finally falling to test May lows support near 0.7148 region.