AUD/USD corrects from 8-month high
AUD/USD reached an 8-month high in the $0.9500 area yesterday, closing just below this mark. The pair has retraced 76.4% Fibo of the decline since October 2013. The bulls have eroded resistance at $0.9448/60 (November 2013 and April high).
Today the pair retraced to $0.9450 as Australia’s trade deficit turned out to be much wider than expected. According to Commerzbank, although daily RSI hasn’t confirmed the recent high, as long as AUD/USD is trading above $0.9430, the bulls will be able to gather strength and push Aussie higher, to $0.9523, $0.9542 ahead of $0.9757 (October 2013 high).
However, note that the RBA Governor Glenn Stevens is due to speak tomorrow at 01:00 GMT. The Reserve Bank of Australia might be uncomfortable with high national currency. Dovish comments can bring AUD to the support line at $0.9400.
Chart. H4 AUD/USD