Forex: AUD/USD looking bid on RBA-induced moves above 1.05

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FXstreet.com (San Francisco) - AUD/USD is pulling back slightly from a 2-day high hit shortly after the weekly opening in the last hour, which likely found initial bids on weekend reports that suggest pressure has been taken off the Reserve Bank of Australia's shoulders regarding further rate cuts. Spot climbed as high as 1.0511 but now trades back around 1.0490, around 10 pips above the close late Friday.

Greg McKenna, Chief Executive at GlobalFX says that AUD/USD needs a break of 1.0498 to see a push higher again. "Each foray above 1.05 has been chased back in the manner of the push below 1.04 Friday," he explains. "So for the moment it is a volatile short term trading range."

Valeria Bednarik, Chief Analyst at FXstreet.com also holds a bullish outlook, explaining that: "the pair has stalled in the 1.0520/30 area in recent trading, yet once above, there's scope for an advance towards 1.0600 with not much in the middle."

Should AUD/USD push above the mentioned 1.0530 area, Ms. Bednarik identifies further levels of potential selling interest at 1.0550 before reaching the 1.06 handle. Bearish targets lie at 1.0470, 1.0430 and 1.0400.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Forex and Currencies

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