Aussie advances on upbeat Australia’s data, falling US dollar and yields
The Australian dollar rallied to three-week high on Wednesday, boosted by weaker dollar and US yield, while Kiwi dollar’s rally on unchanged RBNZ and strong improvement in Australia’s consumer sentiment, additionally supported the currency.
Fresh advance (Aussie was up nearly 0.6% in Asian / early European trading) broke through trendline resistance at 0.7656 (bear-trendline connecting 0.8007 and 0.7849 highs) and eyes pivotal barriers at 0.7708/13 (55DMA / Fibo 38.2% of 0.8007/0.7531) violation of which would accelerate recovery from 0.7531 (Apr 1 low).
Daily techs in bullish setup underpin the action while daily cloud twist (0.7799) also attracts.
Broken trendline resistance (0.7656) is reinforced by rising 100DMA and offers solid support which is expected to hold and keep bulls in play.
Res: 0.7708; 0.7713; 0.7741; 0.7769
Sup: 0.7563; 0.7531; 0.7499; 0.7461