Aussie’s stellar bounce continues

It has been a soaraway time for AUD/USD, as the antipodean currency bounces out of its short-term downtrend to rise to its highest level since mid-December 2013.

The downtrend has been broken and the Aussie is racing higher, pushing above the mid-January high. The currency cross has ignored a subdued update from the Reserve Bank of Australia and is instead looking to challenge the December high around 91.50.

The surge higher has taken AUD/USD right towards the 200-day moving average, which could provide a fairly substantial barrier. Much may depend on the result of today’s non-farm payrolls (with 151,000 additional jobs expected) in the short term. The 200-day moving average has begun to level out, but the last time we saw AUD/USD peek through this, in mid-October 2013, it was but a short trip.

For now, however, the immediate target and resistance is just a short distance away, around 91.50. If that is broken then look towards the July 2013 highs, just below 93.00, as a medium-term target. 

Spot FX AUD/USD chart

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