Wednesday, April 25, 2018
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AUD/USD rallies hard to test 0.8100 on aggressive USD selling
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  • DXY keeps falling.
  • Aussie nears Sept 2017 tops.
  • Focus shifts to the US data.

The offered tone around the US dollar keeps growing bigger, now pushing the AUD/USD pair sharply higher in a bid to regain 0.81 handle.

AUD/USD: Further upside still in play?

The Aussie extends its renewed upside into a second day this Friday, as the bulls continue to take advantage of the persistent weakness seen in the US dollar against its major rivals amid a change of stance by the US authorities on the US dollar exchange rate.  The US dollar index came under aggressive selling pressure after the US Treasury Secretary Mnuchin said that a weaker USD is good for trade opportunities.

Moreover, an extension of the weakness in Treasury yields combined with rising oil prices boosts the demand for the AUD as a higher-yielding currency while the rebound staged by its OZ counterpart, the NZD, following a big miss on the CPI figures, also provided extra legs to the ongoing rally in the spot.

Valeria Bednarik, Chief Analyst at, writes, “The strong momentum in commodities, with US oil above $65.00 a barrel and gold prices firmly above $1350.00 a troy ounce, fueled the rally. The pair is not far below 2017 high of 0.8124 achieved last September, a possible bullish target for the upcoming sessions.”

Markets now look forward to the US jobless claims, goods trade balance, and new home sales data for fresh trading opportunities in the day ahead.

AUD/USD Technicals

Jim Langlands at FX Charts, notes: “The longer-term uptrend remains intact, although the 4-hour charts a showing some bearish divergence and the daily charts look toppish and warn of a deeper correction, lower. While above the rising trend support though it may just be a buy on dips scenario. A break of 0.785 would hint that a top is in place, signaling a deeper decline towards 0.7950 but until then buying dips remains the overall theme.”

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