Australian Dollar surges broadly today and even over-powers other commodity currencies. Surging iron ore prices are seen as a factor driving the moves. Iron ore entered a stage of parabolic rally after authorities at Pilbara Ports, the world’s largest iron ore export terminal, issued a cyclone warning, exacerbating an already tight market.
AUD/NZD’s strong rebound now argues that corrective fall from 1.1043 might have completed at 1.0418, just ahead of 61.8% retracement of 0.9994 to 1.1043 at 1.0395. Break of 55 day EMA is a bullishness and further rise is expected as long as 1.0568 support holds. Focus is now on key resistance at 38.2% retracement of 1.1043 to 1.0418 at 1.0657. Decisive break there will firm affirm near term bullish reversal and target 61.8% retracement at 1.0804 and above.
AUD/CAD’s break of 0.9617 resistance also indicates resumption of rebound from 0.9247. It’s possibly that rise from 0.8066 is resuming too. But AUD/CAD would need to take out 0.9696 high to confirm. In the case, next upside target is 38.2% projection of 0.8066 to 0.9696 from 0.9247 at 0.9870. Break of 0.9456 support would extend the consolidation form 0.9696 with another falling leg instead.
