FXStreet (Guatemala) - AUD/USD has extended gains and is up to test the hourly 200 SMA having broken the 50 SMA yesterday and garnered demand in risk-on markets.
AUD/USD made higher highs and lows from 0.6975 and printed a high of 0.7037 since. Asian equities took off towards the close, besides the Nikkei finishing slightly higher than the lows of the session. Also, signs of improvement in China's property market are boosting prospects for copper, which is supporting the Aussie to some extent as well.
The 0.7000 has been taken out and this leaves it in a positive light. We now await the jobs report for the Australian economy and with that being the next biggest catalyst, the market has allowed some flexibility on the price ahead of the data tomorrow. Home loans and RBA's deputy, Lowe, are coming up tonight.
AUD/USD bullish, but still below key resistance
A break of the 200 SMA on the hourly at 0.7042 opens up 0.7062 as a target ahead of 0.7100 short-term. However, the market may need to overcome the 0.7448 July 21 high to negate downside pressure in the broader bearish trend.
To the downside, 0.6500 may have psychological importance, looking back on the longer-term charts, there are very little technicals until 0.6000. 0.6850 guards 0.6774 June 2004 low then 0.6280 2009 March lows and also 0.6122/.6010, the 2008 lows.
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