AUD / USD Trading Outlook
AUD/USD is sat in an uptrend after reversing off 0.9850 earlier on the week. It currently trades at 0.9977 and the high of the day is 0.9988. The parity, 1.0000, level is an extremely significant level in the market and is one that has been tested twice in the last week (June 8th and June 11th). Both tests failed to hold trading above parity and saw the pair back into the 0.98’s.
AUD/USD quickly retreated off the high and test on parity falling down to 0.9850 support. Overnight however investors jumped in to buy at these lower levels pulling the pair back above 0.9900. In the short-term resistance is seen at 0.9915/18 if this breaks the next resistance lies at 0.9940 where there is a preference to sell with profit target at 0.9815 according to Trading Central technical analysis.
AUD/USD came up to challenge the parity level again overnight, posting a 1.0008 high below falling back to 0.9960. This is the second test on parity since the break lower on May 14th, as the level is tested more times it becomes weaker. Intraday technical analysis has a preference to buy from 0.9880 whilst the RSI lacks downward momentum. Tomorrow at 02:30 BST we have Australian business confidence data and aside from USD price action the markets will also focus on news out of China as an indication of where AUD should be valued.
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