The Australian dollar remains at the front foot on Wednesday and probes again through cracked double-Fibo barriers at 0.6990/94 and psychological 0.70 level.
Positive tone on weaker US dollar after further dovish comments from Fed officials, offsets negative signals from weaker than expected Australian GDP (Q1 0.4% vs 0.5% f/c) which adds to signals for further RBA easing and China’s Services PMI falling well below expectations (May 52.7 vs 54.3 f/c).
Strong bullish momentum and multiple daily MA’s bull-crosses underpin the advance, which requires close above 0.70 barrier to signal continuation of recovery phase from 0.6864 base towards 0.7032 (falling 55SMA) and 0.7074 (falling 100SMA) in extension.
Bull-cross (5/30SMA’s) at 0.6961 marks solid support which should contain dips and keep bullish bias.
Res: 0.7007, 0.7020, 0.7032, 0.7074
Sup: 0.6981, 0.6961, 0.6944, 0.6926
