AUD/USD: time to jump off the recovery train?

By FXStreet AUD/USD has been one of the best performers of late, rallying to questionable heights, which means to you the reader, it is time to make a decision. Can this recovery train keep going or is it time to jump off?

We have been in a recovery phase of a glut in commodities after a 15 year rally in prices and the Aussie dollar is the major ‘general’ commodity currency garnering most of its support in recent weeks in a comeback in oil and metal prices while underpinned by a cautiously bullish RBA.

So, on a fundamental basis, “Can a recovery in commodities continue?” might be the first question to ask. The next question, given the recent FOMC outcome, would be whether the greenback is now a sell while then the RBA is put back to third place in analyzing the currency.

AUD/USD recent price action

Valeria Bednarik, chief analyst at FXStreet explained that the “Australian dollar retreated on Friday from a fresh 8-month high of 0.7679 against the greenback, but closed the day with gains, around 0.7600. ” This is quite significant, since it tells us that the market is overbought through 0.7600. If the Aussie cannot hold onto gains after …read more

Source:: FX Street