AUD/USD: awaits next catlyst, testing critical highs

By FXStreet AUD/USD has been consolidating the greenback’s sell-off that enabled the bulls to ride right up to the 0.77 handle and score a recent high of 0.7709 and the highest level since 1 July 2015.

Evans overtly dovish, but offered optimism – Westpac

However, the fundamentals for the Aussie may not be a pretty as the rally. For instance, today, spot iron ore fell for the sixth consecutive session, -1.7% to $54.18/tonne. Up ahead we have housing data and Australia Feb private sector credit. In respect of housing, housing credit has cooled as lending conditions have tightened, moderating to 7.3% in Jan, a trend that is welcomed by the RBA. However, this only allows for the RBA to cut if necessary at some stage in the future should conditions warrant it, weighing on the downside for the Aussie. “Australia Feb private sector credit is due at 11:30am Syd/8:30am Sing/HK,” explained Westpac who are forecasting 0.4%m/m while the median is 0.5%.

AUD/USD levels

AUD/USD rallied to a high of 0.7709, beating the (18th March high) of 0.7680. That leaves the barrier lower for a run towards 0.7850 (38.2% retracement of move down from 2014). To the downside, 0.7650 was a resistance yesterday on …read more

Source:: FX Street