AUD/USD: Will the recovery sustain ahead of US data?
|The AUD/USD pair is seen making minor-recovery attempts near the mid-point of 0.78 handle, as the Asian recovery in the US dollar appears to lose steam.
AUD/USD tracks commodities higher
The spot recovers losses, mainly driven by fresh buying interest seen across the commodities, especially with gold and copper prices returning to the green zone. Moreover, stalled recovery in the US dollar against its major rivals also collaborates to the fresh bounce seen in the Aussie.
Meanwhile, the Aussie paid little heed to the Australian private sector credit data released earlier on the day, as mixed sentiment on the Asian equities combined with weaker oil prices negatively affected the higher-yielding AUD.
Also, heavy losses seen in its OZ neighbor, Kiwi, weighed down on the AUD/USD pair. Looking ahead, it remains to be seen if the prices can sustain the recovery, in light of a slew of US macro updates and FOMC member Harker’s speech.
AUD/USD Technical Strategy
Jim Langlands at FX Charts, explains, “The Aud fell to a low of 0.7799 on Thursday and further medium term losses look highly likely, although the short term momentum indicators are now turning higher and a minor topside squeeze would not surprise on Friday. Sell AudUsd @ 0.7875. SL @ 0.7910, TP @ 0.7785.”
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