The aussie is continuing to build on further gains against the dollar, as we see price touch a high of 0.6852 on the day – its highest level since late January.
The pair has all but erased its coronavirus decline and buyers are now setting sights on the 0.7000 handle as the risk rally continues to extend further.
Much like the S&P 500 chart, it is tough to argue with the technical break since last week and the momentum from that break surely had a lot of “bears” caught in a dilemma. Do you want to insist on being right or do you want to make money?
It’s absurd to think how this rally has been driven so much by cheap money and managed to get to where it is now, but it is so tough to argue against the charts and price action.
For AUD/USD, the RBA didn’t make any special mention of its now ~6% rise against the dollar since its May policy meeting. That can be interpreted as a green light to at least chase a move towards 0.7000 should the fundamentals keep working in its favour.
Technically, there is also little resistance before we get there with the swing highs around 0.6910-30 being the only other notable levels on the chart at the moment.