AUDUSD: Strong Resistance Ahead at 0.70
The Aussie continues higher at 0.6995 registering gains for sixth straight session amid broad USD weakness. AUDUSD hit the low at 0.6830 the previous week but managed to rebound after FED opened the door for interest rate cuts before the end of the year. Aussie economy is at risk from heightened global uncertainty due to trade war between China and USA, but this week as investors sentiment improved before the G20 summit in Osaka helped AUD. Economist’s have increased bets of a Reserve Bank of Australia interest rate cut as soon as July.
Australian dollar currently trading close to daily high at 0.698 as the short term positive momentum is still intact. The pair now will face the important 0.70 psychological resistance which if breached can extend the rebound to 0.7035 and the 100 day moving average. On the downside first support stands at 0.6962 the 50 day moving average, while more bids will emerge at 0.6827 the low from June 18th.