AUD/USD is keeping the overnight momentum going to start the session
The pair took clues from the risk-on push yesterday and the fact that RBA governor Lowe did not push back against the strength in the currency, and is running with things as the aussie climbs to its highest levels since April 2019 now against the dollar.
A break above the June high @ 0.7063 was a positive signal with the pair even managing to close above 0.7100 and taking out the highs seen in July 2019.
Right now, buyers are looking poised to try and push towards the 0.7200 next before potentially taking aim at the 200-week MA (blue line) @ 0.7264.
Once again, much like how the S&P 500 broke above its key resistance region at 3,233 to 3,235 to start the week, we are seeing AUD/USD mirror similar price action on a break of key resistance around 0.7032-63 in trading yesterday.
That is precipitating further gains in the pair and so long as the risk mood keeps more positive, buyers will be poised to look at 0.7200 in the sessions ahead. The late 2018 highs near 0.7400 will provide the next key area of resistance beyond a push above 0.7200.
It’s still all about risk so just be mindful that there are still some key risk events with earnings season still in the mix, not to mention month-end trading approaching next week.