Australian dollar up 65 pips to 0.7665
This is a nice looking reversal but there's no strong signal here. It's back testing the lower bound of the January range and that's going to offer some resistance.
The RBA was surprisingly dovish this week. I don't think that's going to last and there are some big commodity tailwinds for AUD but it's been a struggle so far this year following the big run to end 2020.
In the bigger picture, the US dollar looks better as growth there accelerates but AUD is also very well positioned for expansion. I wrote about CAD/JPY earlier and I think it's a similar story. Why pick between AUD and USD when you could own either of them against JPY or CHF?
