Chart of the Day – AUDUSD – Recent Bullish Trend

The AUDUSD has rallied from the lows made on the 19th of march 2020 at 0.55073 to currently test the 0.70000 level representing a gain of 27.1% in under three months. From the fundamental perspective, the Australian Dollar was perceived as being undervalued. Furthermore, statements from HSBC Australia strategist, Thomas Nash, anticipate that the AUDUSD could rise to 0.75 by next year, due to supportive monetary and fiscal policy measures, improving risk sentiment, and the nation’s record trade surplus. In addition, the Reserve bank of Australia governor, Philip lowe’s remarks of continual optimism and strength in their most recent policy meeting will further strengthen the fundamental bullish bias.

In addition, the unemployment rate for May in the U.S. is projected to rise to 19.8% from 14.7% in April while nonfarm payrolls are estimated to decline by 8 million. If we see worse expected numbers come out today for the U.S., this will be bullish for the Australian Dollar. From a technical perspective, the 0.70 level until the price closes above it, could act as a psychological level of resistance. However, the price is above the key moving averages and the price action suggests a continuation of the recent bullish trend.