AUD/USD (current price: 0.7571)
Australian HIA Home Sales declined by -9.7%, but the Aussie recovered from its early losses during the day, as commodities remained stable despite the Dollar rally as well. Friday’s strong bearish move might be the start of a deeper correction, but this week’s U.S. Employment Report might still change the underlying trend, especially if global stock markets continue to rally. The currency remained relatively strong in recent weeks, but the pair broke below the lower boundary of the prior bullish consolidation zone on Friday.
Our assessment: The cross turned lower on Friday below the all-important 0.76 level with strong support at 0.7535, and near 0.75. Crucial resistance is close to 0.7650, at 0.775, as the short-term picture remains neutral.
