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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.