AUD development would hinge on the USD – Commerzbank

The aussie seems unstoppable since this constant upside initiated on December 20. Fuelled by positive news coming from the euro zone and hopes of a deal in the PSI negotiations in the Greek front, the cross has managed to quickly left behind the 1.0700 mark climbing as high as 1.0756 after the outstanding surplus in its trade balance of AUD 1.71bn in December (AUD 1.23bn exp.).

A.Praefcke, analyst at Commerzbank, remarks the exceptionally strong momentum in the AUD and adds that a cut in the benchmark interest rate by the RBA next week is priced in already. And she insisted in although the 1.0750-60 area has been a formidable resistance in the past, a breakout would trigger stop-losses orders, giving the cross an extra impulse.

“Due to lack of Australian economic data over the coming days the breach of the resistance will depend on the general USD moves”, she affirmed signaling the euro zone news flows and today’s Chairman Bernanke’s testimony as catalysts for a possible move up.

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