Back to Blog

AUD/USD: strong bullish bias

The Australian dollar was one of the least affected currencies against the US dollar on Tuesday’s big sell-off with the AUD/USD advancing remarkably in the past two sessions.

As the Aussie dollar is closely correlated with the Chinese economy, and with the latest Chinese economic data better than expected (it wouldn’t be surprising to see more upbeat data if one considers the upcoming elections), it is safe to assume that at 1.038 at the time of writing the bulls have the upper hand.

An upside penetration of the 1.0425 level would expose September’s highs at 1.0425 with major support sitting at 1.0295. Traders have a lot to absorb on the economic data front today with the US jobless claims and the pending home sales among the most important for the fate of the US dollar.

Click to expand image

Dafni Serdari
Market Analyst

Published: 25 October 2012

You should under no circumstances consider the information and comments provided as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.

Share this post

Back to Blog