The Australian dollar hit five-month high (0.6811) on Tuesday, in extension of Monday’s 2.1% advance.
Australian central bank kept interest rates on hold at 0.25% on policy meeting earlier today, keeping cautious optimism over post-pandemic recovery.
Also, data released today showed surprise results (Q1 company profits 1.1% vs -3.5% f/c and trade surplus rose to A$ 8.4B vs forecasted A$ 6.3B), suggesting that the impact from lockdown in the first quarter may not be as negative as expected.
Traders turn focus on Wednesday’s release of Australian Q1 GDP for more information.
Monday’s rally cracked 0.6800 barrier, eyeing weekly cloud base (0.6848), with psychological 0.70 barrier coming in sight.
Overbought daily studies give initial warning that bulls may take a breather and consolidate before resuming.
Dips should be ideally contained by rising 5DMA (0.6702) which guards pivotal 200DMA support (0.6640).
Res: 0.6811, 0.6848, 0.6900, 0.6969
Sup: 0.6774, 0.6702, 0.6680, 0.6640
