Analysis

AUD/USD hits zero.8000 for the primary time in over three years

The aussie has hit the important thing milestone, what’s subsequent?

AUD/USD W1 25-02
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AUD/USD is extending positive aspects on the day because the greenback stays pressured, with the pair now touching above zero.8000 for the primary time since 2 February 2018.

That is one which has been coming because the latter levels of final yr however I might argue that it’s enjoying out in a a lot faster timeframe than I might have anticipated.

Granted, the commodities rally and newest spherical of greenback weak spot is an element and parcel contributing to the surge greater because the finish of final week however this has been a really exceptional restoration in AUD/USD from the depths of the pandemic lows final yr.

As worth hits the important thing milestone, it places into focus the 2017 and 2018 highs round zero.8125-36 – not less than from a technical perspective.

Nonetheless, now that we’re right here, I might argue that the RBA shall be extra actively watching worth ranges and verbally intervening transferring ahead.

That stated, I am fairly uncertain of their talents to pin down the foreign money as long as the market panorama and fundamentals proceed to play out as they’ve in current months.

Including to that’s the truth that the Fed put will proceed to maintain the greenback pressured to the draw back within the larger image.

Regardless of already reaching such ranges early on within the yr, it’s powerful to struggle the market momentum if the main focus continues to be on reflation (bolstering commodities) and a worldwide financial reopening (higher for riskier currencies).

As such, positive aspects could also be extra bumpy from hereon if the RBA decides to make identified their dissatisfaction with worth ranges but when equities keep on with the occasion and the worldwide financial outlook continues to enhance, we could also be concentrating on zero.8500 subsequent.

Going again to the technicals, simply take notice that the 200-month transferring common sits @ zero.8256 as nicely. However worth seems set for a primary month-to-month shut above the 100-month transferring common – which sits @ zero.7860 – since August 2014.

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