The Australian dollar exploded on the bad employment data from the US and made 200 today. Just before markets close, AUD/USD is at 0.9920, after already reaching 0.9940.
0.9915 is a minor line of resistance. Closing above this line will open the road for AUD/USD parity early next week. The Aussie suffered from weak GDP earlier in the week, and also from a drop in retail sales. But other data such as trade balance came out very well. It also got a boost from Chinese Manufacturing PMI – China is Australia’s main trade partner. Next week we have employment data in Australia among other figures, and also another important indicator from China.
Stay tuned. In the meantime, readthe most recent analysis, with technical levels – see the AUD to USD forecast.