AUDUSD Chart Technical Outlook needs to break above 0.6580 to extend its rally
The Australian Dollar has been appreciating for six consecutive days against the USD and is now testing the top of the last three week’s downward channel, at the 0.6580 area.
A confirmation above here, where the 4h 200 SMA is also meeting the price, will boost bulls’ confidence, increasing pressure towards 0.6630 and 0.6685. Supports are at the confluence of the 4h 50 and 100 SMAs, at 0.6520, and below here, 0.6445.
The Aussie is being buoyed by a broad-based US Dollar weakness, as US Treasury yields retreat from highs, which have offset the negative impact of investors’ disappointment following China’s interest rate cut.
The focus today is on the minutes of the Federal Reserve’s January meeting, although the strong US inflation levels seen last week have prompted the market to push Fed easing expectations back to June at least.
