AUD/USD: improved outlook
Kira Iukhtenko, FX BAZOOKA analyst
Australian dollar jumped higher on Thursday, fuelled by upbeat data from the “Land of Kangaroos”. Australia has been publishing strong figures since the beginning of the week, but the Ukrainian risks contained the upside. Today, strong retail sales and trade data combined with improved risk sentiment pushed the Aussie above the key $0.9000 resistance. The pair hit a high of $0.9035 in the Asian trade and holds above $0.9000 in Europe.
This combination of strong data and positive market sentiment could offer more support for the Aussie. However, the major resistance is still seen at $0.9080 (38.2% Fibo from the 2013 decline). I still doubt that bulls are strong enough to push above this level. Understanding of the fact that RBA feels uncomfortable with the overvalued AUD is likely to limit demand. Slide below the $0.8900 support could return the bearish forecast into the limelight.
Chart. H4 AUD/USD