AUD/USD: waiting for Stevens to speak
AUD/USD is trying to hold above 0.7800. Last week Aussie was in demand rising for 3 days in a row. The pair was helped by better data from Australia and weaker figures from the US.
Resistance is provided by April highs in the 0.7840 area ahead of the 100-day MA at 0.7890. Support is at 0.7760, 0.7680 and 0.7640/25.
Reserve Bank of Australia Governor Stevens will speak at 22:40 GMT. Traders will be watching the speech looking for the hints about the RBA’s monetary policy meeting on May 5. More traders start to think that the central bank won’t cut interest the benchmark interest rate this time. A positive factor for Aussie is the recovery in iron ore prices from $US46.70 a tonne on April 2 to the $US60 a tonne mark. The expectations of further monetary easing in China are also making economists more optimistic about Australian exports.
On Wednesday there will be important news from the US – American GDP for Q1 and the Fed’s meeting minutes.