Technicals indicate further upside for the pair, bias is higher, Stochs, and point north, gains upto 0.7250 likely.
Bid tone around the Aussie gathered pace after BoJ announced negative rates and hinted at more interest rate cuts if required.
The main data focus today will be the first estimate of US GDP in Q4, which is forecast to show a marked slowdown from annualised growth of 2.0% in the prior quarter.
Forecasts are for a reading of 0.8%. A reading which is better than the market forecast is for the dollar.
We would buy dips in the pair around 0.7110/7120, SL: 0.7040, TP: 0.72/0.7250
R1: 0.7160 (Nov 13 highs)
R2: 0.72 (Dec 18 highs & psychological level)
R3: 0.7250 ( resistance)
S1: 0.7068 (session lows)
S2: 0.7040 (5-DMA)
S3: 0.70 (Jan 28th lows)