AUD/USD stays bid near term – Commerzbank

The stance on the Aussie Dollar remains bid in the near term, aiming to test 0.7320 vs. the greenback, suggested Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

“AUD/USD is bid very near term. We would allow for recovery towards the 55 day ma at .7320 and we will need a close above here, and preferably above the 2018 channel at .7379, to confirm a short term reversal”.

“We note that the market has eroded the May and December 2016 lows at .7161/46. However we also note that this break lower has not been maintained – and we are beginning to suspect a false break lower”.

“Below the .7085 recent September low should be enough to open up the path to .6827 the 2016 low”.