- The dollar continues to weaken supporting the AUD / USD.
- Market with eyes on Friday US non-farm payroll report.
The AUD / USD is rising for the third day in a row, taking advantage of the optimistic tone in financial markets and the weakness of the dollar. The pair climbed to 0.7392, the highest level since August 6. It remains near the highs, with expected resistance at 0.7400.
The momentum of the AUD / USD remains strong despite accumulating a rally of almost 200 pips since mid-August. The key factor remains the weakness of the dollar. The greenback is weakened by rising equity markets and falling Treasury yields.
Powell’s words and the latest US data have delayed the expectation of announcements of a cut in the buying program by the Federal Reserve. On Thursday in the US the report of requests for unemployment benefits will be published. On Friday it will be the turn of the official August employment report with non-farm payrolls, while in Australia data will come out of the service sector.
In case of extending the rises, the AUD / USD has resistance ahead at 0.7400 and then at 0.7425 / 30 where are the August highs. Supports are now seen at 0.7375, 0.7355 (Sept 2 low) and 0.7335.
Technical levels
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