AUD/USD recovery running its course

By FXStreet FXStreet (Guatemala) – AUD/USD is struggling on the minor recovery to break clean through the 50 SMA at 0.6924 on the hourly chart and has run in to resistance 20 pips higher.

The major has otherwise been supported in a change of risk tone in Asia, recovering as Asian stocks are performing better albeit the Nikkei running into some resistance just shy of the psychological 18,000 mark at 17,976.07. The CSI 500 Index remains up over 2% and S&P futures remain up 0.6%.

While risk appetite is a key factor for the pair, this week comes with the key jobs report for the Australian economy as well. An upbeat outcome may prove to support the unit while otherwise, data has not been very kind to the Aussie of late and there remains a bearish bias to the dollar-bloc currencies. “Between the impulses from the slowing of China, the surplus of oil being produced, and the prospects of a Fed hike, further losses are likely,” explained analysts at Brown Brothers Harriman.

AUD/USD remains in strong bearish channel

Technically, the analysts explained, “The Australian dollar has convincingly broken the multi-year trend line on the monthly charts going back to 2001. …read more

Source:: FX Street