The Australian Dollar is helped by a stronger commodity market today in early trading. The Aussie is also pushed higher, even compared to the U.S. Dollar, by the favorable U.S. economic news. The technical picture remains mixed in the pair with a confirmed uptrend, but overbought short-term indicators. Odds favor continued correction after AUD/USD hitting 0.77 two weeks ago. The support zone around the 0.74 level coincides with the rising trend-line and looks to be the primary target above the 200-day MA at 0.725.
Our assessment: AUD/USD is in the middle of a correction following the strong run-up since the January lows, with the commodity market having the biggest effect on the currency. Traders will probably focus on the price of oil yet again today.
