The softer inflation data at the end of July dampened hopes of a RBA rate hike this month and that dragged AUD/USD down for a bit last week. But with USD/JPY intervention keeping things interesting, the dollar fell across the major currencies space and helped to see a bounce in AUD/USD. That before the breakout in Wall Street yesterday gave more impetus for the currency pair to try and push for a stronger upside break above 0.7000.
The jump higher yesterday erased the losses from Monday and puts the focus back on the 100-day moving average (red line):
[AUD/USD daily chart]
The currency pair has been in a bit of a bind in the past two months, trending between the key daily moving averages. But with hopeful optimism surrounding US-Iran developments, bond yields coming off the boil, and equities looking to go on a tear, is it all coming together to help see AUD/USD break out to the upside?
All eyes will be on the 100-day moving average, seen at 0.7050 currently. A firm break above that will free up room to run towards 0.7200 next with the May highs at 0.7250-77 eyed next.
The technical breakout in Wall Street might just be the right catalyst to facilitate that, especially with the dollar still in limbo after the USD/JPY joint intervention.
That being said, just be wary though that August has typically been the worst month for AUD/USD in the past two decades. However, that still hasn't stopped the aussie from defying the seasonal trend in each of the past two years during August trading.
This article was written by Justin Low at investinglive.com.提供 MainLink：Investinglive RSS Breaking News Feed
