AUD/USD recovers to 0.7020 on commodities

By FXStreet FXStreet (Guatemala) – AUD/USD has desks back in Australia today after Australia day and also CPI data. However, the focus will stay with China again and commodity prices. With a pick-up on the price of oil, the Aussie should find some support on that in Asia and the recent highs on the 0.70 handle could be tested again.

We have the API inventory data at the bottom of the hour as well to watch. China though does not offer anything on the calendar to note, but again the fix and open will be monitored and ears to the ground for further action from the Chinese authorities. Commodities, besides oil, will also be a driving force in the price and we have already seen a big pickup in copper rallying from 7 day highs 1.9883 to 2.0483.

The price to watch for in copper is the bear trend resistance at the daily 100 sma and 2.2000 although China’s epic credit bubble and dollar strength should keep a lid on any sustained rally.

AUD/USD levels

AUD/USD has tested the 0.7020 level with the 20 sma on the 4hr chart crossing up through the 100 sma on the same time frame. The recent …read more

Source:: FX Street