AUD/USD (current price: 0.7638)
The Australian Dollar continues to show relative strength, despite the recent correction in oil and the interest rate cut by the Royal Bank of Australia last week. The local economy looks to be resilient to the weakness in Asia, and yesterday’s better than expected Chinese Trade Balance gave a boost to risk assets in the region. The pair rose back to the key resistance level at 0.7650, and a break-out above that zone is possible if global sentiment remains positive.
Our assessment: AUD/USD is still in a short-term uptrend, despite the negative environment for the commodity-currency, and the recent broad rally in the Dollar.
