AUD/USD (current price: 0.7430)
The Australian Dollar opened above the crucial support/resistance zone near 0.74 this morning after trading modestly higher on Friday as well. The pair remained strong last week despite the negative environment, although it touched the 200-day MA near 0.7285 on Thursday, following the disappointing Bank of Japan announcement. The long-term picture remains slightly bullish, with strong resistance ahead at 0.75 and around 0.7675.
Our assessment: The Aussie recovered well after the sharp decline that followed the surprise rate cut by the RBA in May, and a move higher to the 0.75-0.76 zone looks likely now.
