The AUD/USD pair has staged an impressive recovery from the nadir of 0.7106 in August. The aussie is dropping back towards 0.7400 but while above 0.7390, AUD/USD has potential to hit the 0.7600 level, in the view of economists at Société Générale report.
Important support seen at 0.7295
“The short-covering squeeze in AUD/USD ties in with the rebound in China Tech stocks, but last week’s return over 0.7450 appears overdone.”
“Short-term holding above 0.7390, the AUD/USD pair could inch higher towards 0.7500 and the 200-DMA near 0.7560/0.7600 which is also the daily Ichimoku cloud. This could be an important hurdle.”
“Daily Kijun line at 0.7295 should now be an important support near-term.”