FUNDAMENTAL ANALYSIS
Not unlike the Canadian dollar, the aussie’s strength is largely attributed to a rebound in oil and commodity prices.
This week's RBA rate hike and promising economical data portrait a bright future in the long term.
Australia's economical outlook remains positive. Its growth is largely attributed to sustained trading activities with China and other Asian partners.
On the other hand, the aussie does suffer from worries in Europe and is particularly vulnerable to risk aversion against the dollar. Moreover, China's threat to tighten its monetary policy could prevent the aussie from appreciating considerably.
TECHNICAL ANALYSIS
The 4-hour chart shows a healthy up trend. However, the daily chart reveals a strong resistance at .9320 which has played a critical role in the past. We will have to wait and seen how it will react. A sustained breakout above 0.9400 would open the way to a retest of 2008's high at .9846.
Resistance levels:
- .9320
- .9400
Support levels:
- .9247
- .9129
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