AUD/USD thinking about its next move
The AUD/USD looks awfully similar to the S&P 500. Both a trying for the third time to break above the post-pandemic highs. The S&P 500 edged above it yesterday but you look for charts like this to confirm one another and so far that’s not the case.
AUD/USD rose as high as 0.6564 today but has pulled back by 20 pips. The high on April 30 was 0.6570.
This is as good of a spot as anywhere to watch for what comes next. A break to the upside would have to get through the March high of 0.6685 to sustain a real run. On the downside, the late-April high of 0.6254 would be an attractive target.
On the fundamental side, the spat
between China and Australia has resulted in tariffs on grains. That’s a negative for AUD that could blow up. On the positive side, Australia continues to have the upper hand on the virus.