The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
The sell-off in treasuries also continued with the 10-year finishing the session up 3.5 basis points. AUD/USD rallied to $0.8124 and this will provide fresh headaches for the RBA.
The momentum from the budget also seems to be continuing for the AUD and not even a poor showing from China data yesterday was enough to deter the currency. This has left the pair trading at its highest since January – the period before the RBA’s first rate cut.
Clearly all the hard work has been swiftly undone. The high in January was $0.8295 and that’ll be a potential target for traders. A downtrend that’s been in place since September last year has also been broken and this has been complimented by a close above the psychological $0.8000 barrier.
There is also a nice uptrend from April lows and that’s supporting the price action. Stops would no doubt also have been triggered upon the move above $0.8000 and this could see the pair squeeze even higher.