AUD/USD back above the key 0.70 level

By FXStreet FXStreet (Guatemala) – AUD/USD is currently trading at 0.7023 with a high of 0.7027 and a low of 0.6938.

AUD/USD has rallied in a minor recovery back into neutral territory onto the 0.70 handle and is performing well in light of slightly less negative commodities, continued strength Gold and oil and a weaker greenback based on mixed durable goods data today.

AUD/USD headed back to 0.6850

AUD/USD has gained the 0.70 handle once again and this has been a key level and puts the pair back into neutral territory. A test back to the downside, Sean Callow, analysts at Westpac Banking Corporation, explained that their short term models suggest fair value is some way higher, backed by commodity prices which are mostly well above recent lows.

“Markets are also not enthusiastic about the chances of another RBA rate cut, placing only a 40% probability by year-end, despite all the gloomy headlines. Chatter about possible policy announcements over China’s Oct 1-7 holidays could also help AUD/USD stabilize short term, though a marginal new low since 2009 (say 0.6850) would hardly be a shock.”
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Source:: FX Street