The pair has broken above 200-DMA at 0.7254 and trades with a majorly bias despite weak MI forecasts.
Data released earlier today showed Australia Melbourne Institute reading came in at +1.0% y/y vs prior 1.5%. While m/m was at -0.2% vs +0.1% in the previous month.
Data will be a concern for the RBA which meets tomorrow to decide policy.
The RBA is widely expected to remain on hold considering the recent upbeat GDP data, while a dovish statement cannot be ruled out.
Focus now remains on Fed Chair Yellen’s speech for fresh take on the US interest rates policy.
Immediate resistance is 0.7368 (post NFP highs), break above can see upside till 0.74 and then 0.7450 (38.2% Fib).
On the downside 200-DMA at 0.7254 is major support, break below invalidates bias, exposes downside to 0.7148 levels.
Good to buy dips around 0.7320, SL: 0.7250, TP: 0.7368/ 0.74/0.7450
TP1 achieved, book partial profits, raise stops to 0.73, holds for upside. Break below 0.73 could drag the pair to 0.72 levels.
AUD/USD has broken below minor support at 0.7472 on the hourly charts, intraday bias lower.