AUD/USD Finds a Bid Towards 20 DMA in Bears Territory
was dragged up by the kiwi this week after traders backed the bird when
the RBNZ left rates on hold and did not signal a certainty for the
timings of a next hike, giving the green- light to attack the shorts.
Despite the CPI numbers from the Australian economy earlier in the week, the weakest since 1999, the Aussie has managed to find a bid in a recovery from 0.7548 and has corrected the move from 0.7765. The pair is now through the 200 sma on the 4hr sticks at 0.7629 and is battling with offers at the mid point of the .76 handle. The U.S. 1Q16 GDP increased at an annualised 0.5% rate versus the 0.7% consensus expectation and that has also given the Aussie a lift, supported by a rally in oil today as well.
and is AUD/USD is closing in the 20 dma at 0.7664 and is supported by the weekly 10 sma at 0.7549. However, the pair is in bearish territory below the 0.7850 target level as being the 38.2% retracement of move down from 2014. On a reversal, the next stop is the 50 dma at 0.7514 and April lows of 0.7491.