AUD/USD just tested the key 80.35/40 region after the reflation-supportive US data. The combination of simmering inflation and rebounding growth (as seen in these two reports, not necessarily the broader economy) were right up the Aussie;’s alley.
Given reports of central bank sales in EUR/USD, we’d not be surprised to hear of similar action from Asian sovereigns in the AUD near recent range tops. Stop-loss buy orders lie in the 0.8045 region, traders report. Modest support is at 0.8010/15. Note that intraday studies are quite overbought so AUD could need some consolidation before surmounting 0.8040.
