FxWirePro: AUD/USD Recovers Bearish Opening Gap, Struggles at 0.75 Handle
- Possibility of a hung parliament in Australia caused AUD/USD to open Monday with a bearish gap.
- The major quickly reversed course as strong upward rally in the commodities prices, particularly gold and silver, lifted the bids for the resource-linked AUD.
- AUD/USD edged higher from session lows at 0.7446 to hit highs of 0.7504 and is currently trading around 0.7490.
- The pair unable to extend gains above 0.75 handle, Techs however, support upside in the pair.
- Weakness only below 100-DMA support at 0.7440, drag till 0.7345 then likely.
- On the upside, decisive break above 0.75 could see gains upto 0.7563 and then 0.76 levels.
- Markets ignored mixed data from Australia, with inflation positively surprising, while building consents data came in worse-than-expected.
- RBA’s cash rate decision due tomorrow along while Austalia elections outcome remains the key focus this week.
- Australian elections over the weekend point towards a potential hung parliament, with the vote count to resume tomorrow.
- For lack of conviction on technicals, we prefer to remain on the sidelines for now.