Aussie (AUD) Back To 3-Week Highs!
The Aussie (AUD) has moved back to 3-week highs vs. USD as risk appetite has increased to start 2012. Recent economic data has been positive for the global economy and this bodes well for the Aussie as the likelihood of carry trades picks up.
Looking at the chart below, 1.0330 had served as short-term resistance and the “top tails” were a bit higher to 1.0360 so a close above those levels could mean another move to the upside. Also to note from this chart is that the MACD is just starting to gain some momentum and is not nearly as high as it was the last time we were at these prices levels.
Should the news and data continue to come in better than expected, then we could see 1.05 by the end of the week. Pay particular attention to Thursday, as Chinese PMI services figures are due out, as are Australian trade balance and new home sales numbers.