AUD/USD: supported on 0.72 handle, markets await Yellen
AUD/USD is currently retracing the gains made through the 0.72 handle and has been capped at 0.7244 highs along with Oil that broke through $50 for WTI reaching $50.23bbls.
Aussie: seems that RBA is well priced in already - TDS
The general mood has been risk on and US stocks have continued in a bull trend correlating with a softer dollar along with oil supporting the commodity currencies.
AUD has been steady, despite a soft headline on Capex data yesterday. Some analysts expect the Aussie to consolidate the recent downtrend with much of the RBA easing prospects priced in. AUD/USD has declined from 0.7834 late April business on the back of the RBA cutting rates and inflation forecasts allowing for a devaluation in the price to 0.7140 24th MA lows. 0.6827 was the 2016 low scored at the start of the year post during Chinese stock crisis.
Meanwhile, US data has not had much of an impact as the main attentions are on the Fed and whether they will deliver on their minutes and hike interest rates in June. Fed's Chairwoman Yellen will be speaking tomorrow and markets are awaiting this event in light of the recent dip in the XFFE as participants start to step back from June as being the most appropriate timing of a Fed hike.
US April Durable goods orders: Not a good report - ING
AUD/USD levels
Shortterm, AUD/USD is riding the 200 sma on the 5-minute chart as support, further out, the price is capped by the same on sma on the 1hr sticks at 0.7235. On the same time frame, the 20 sma has crossed up through the 100 sma offering support on the 0.72 handle. On the daily sticks, the 200 dma is located at 0.7252 as first key resistance on a correction of the supply. A break through there targets 0.7310 and 15th May highs with the 100 dma located at 0.7341.