AUD/USD: pushed back from 0.74 handle, lacks momentum

AUD/USD is currently trading around 0.7380 on the pullback from the highs of the break through the 100 sma on the hourly sticks at 0.7365 when the price reached 0.7402.

AUD/USD was lifted overnight on consumer confidence, up by 8.5% and the price has been tracking the bullish drift in gold as well of circa $16.00oz. The improved global mood is also backing the bid in the Aussie that has actually been the strongest currency this week while the JPY has been the weakest. In respect of the RBA now who recently downgraded its inflation forecasts by 1% and cut interest rates, " An occasionally influential RBA watcher in tabloid papers declared the RBA would not cut rates in June, absent disaster," explained analysts at Westpac who explained that pricing for a June move has fallen from about 35% to 20% over the past day, with the better global mood helping.

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the technical readings in the 4 hours chart suggest that the recovery may extend, particularly on an upward acceleration above 0.7400, "as the price is currently developing above a flat 20 SMA, while the technical indicators are standing above their mid-lines, although with no upward strength...," she added that, "...above the mentioned resistance, the rally can extend up to 0.7440, the 38.2% retracement of this year's decline, while beyond this last, 0.7510, May 5th daily high, is the next probable bullish target."