AUD/USD: Supported in Recovery Channel on 0.72 Handle

AUD/USD: Supported in Recovery Channel on 0.72 Handle

27 May 2016, 02:29
Roberto Jacobs

AUD/USD: Supported in Recovery Channel on 0.72 Handle

AUD/USD is currently trading at 0.7225 and was capped at 0.7243 overnight on the re-bound in the vicinity of the 200 sma on the hourly time frame at 0.7234 currently.

A number of factors have supported the case for a recovery with one being oil that broke through $50 for WTI reaching $50.23bbls overnight.

Aussie: seems that RBA is well priced in already - TDS

A softer dollar is supporting a recover in commodities and AUD/USD has made ground on the 0.72 handle as a resiult despite a soft headline on Capex data yesterday. While the RBA cut recently as the Fed hypes up a rate rise in June, Stevens recently supported their inflation outlook and the idea of another cut was tempered. The Aussie could be seeking to consolidate with the recent RBA easing prospects already priced in.

Meanwhile, US data was not great overnight and we now await Fed's Chairwoman Yellen. She will be speaking tomorrow and with the softening of the US dollar and dip in the XFFE, should Yellen's comments favour one way or another, in respect of timings of a June hike, the market will take note and act accordingly exposing AUD/USD in respct to Central Bank divergences. 

US April Durable goods orders: Not a good report - ING

AUD/USD levels

On the 1hr sticks, the 20 sma is located at 0.7216 and has crossed up through the 100 sma offering support on the 0.72 handle. On the daily sticks, the 200 dma is located at 0.7233 as first key resistance on a correction of the supply.  A break through there aims for 0.7310 and the15th May highs with the 100 dma located at 0.7341.


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