AUD/USD (current price: 0.7670)
The New Zealand Dollar led the rally of the region’s currencies yesterday, as the CPI Index in the country came in much better than expected, propelling the surprising advance. The Aussie followed the Kiwi higher, and it hit 0.7675 today in early trading, after the recent correction that tested the 0.75 zone. The pair is still probably the strongest risk-on asset in forex markets, as it is still close to the prior rally highs that were hit back in April around 0.78.
Our assessment: The pair bounced off the long-term trend line last week, despite the strong USD and the global correction, as the uptrend remains intact.
