AUD/USD Retreats from Highs, Near 0.7250

AUD/USD Retreats from Highs, Near 0.7250

1 June 2016, 11:58
Roberto Jacobs

AUD/USD Retreats from Highs, Near 0.7250

The Aussie dollar is fading the initial bull run to the boundaries of the 0.7300 handle vs. the greenback, with AUD/USD currently testing the mid-0.7200s.

AUD/USD gains appear capped around 0.7300

The pair is posting its third consecutive session with gains this week, after bottoming out in the 0.7150 region during May, or 2-month lows.

AUD found further traction after GDP figures in Oz have come in better than initially forecasted, showing the economy has expanded 1.1% inter-quarter in Q1 and 3.1% on a yearly basis. The data have quickly left behind mixed results from the Chinese manufacturing PMI, in its official and Caixin versions.

Ahead in the session, the pair’s upside will be put to the test in light of key releases in the US economy, with ISM Manufacturing and Markit’s PMI due for publication seconded by the API’s report and the Fed’s Beige Book. In Oz, AIG manufacturing index, trade balance figures and April’s retail sales are all due tomorrow.

AUD/USD levels to watch

At the moment the pair is gaining 0.32% at 0.7257 and a surpass of 0.7320 (high May 11) would open the door to 0.7353 (200-day sma) and finally 0.7403 (high May 11).  On the other hand, the immediate support lines up at 0.7142 (low May 24) followed by 0.7105 (low Feb.29) and then 0.7063 (23.6% Fibo of the Jan-Apr up move).


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