With the dollar selling against the EURUSD at least, the AUDUSD has had a rebound too. The move higher is also being helped reportedly by a report from an influential columnist for the Herald Sun named Terry McCrann who said the Australian economy remains in a boom. The GDP fell -1.2% in the 1Q as reported earlier in the week. However, he commented that the decline will come back in the 2nd quarter as the decline is simply because the suppliers of mining material could simply not get the goods out fast enough. Hence there should be a sharp rebound in 2Q.
From a technical perspective, the pair moved above the 100 hour MA at the 1.0676 level and this wlll now be short term support. On the 5 minute chart below the move higher is steep and contained by a channel. A move outside the boundaries will be eyed by intraday traders looking for momentum clues. However, stay above the 100 hour MA now and the bias remains to the upside.
No comments:
Post a Comment