AUD/USD upside stalls at the 0.7900 region

Author: Justin Low | Category: News

The pair touched an intraday high of 0.7905 before slipping a little

The aussie got a major boost from yesterday's retail sales data beat while the dollar was the worst performer in the major bloc. That gave a boost to AUD/USD as it made a run up towards key resistance levels sitting near 0.7900.

I highlighted this area at the start of the week here. Now that buyers found a leg higher after the data yesterday, the rally seems to have stalled at around the 0.7900 level as there are large offers reportedly sitting just above 0.7900.

That will likely keep the pair contained for some time. Looking at the hourly chart:

The pair got a boost from yesterday's retail sales and jumped up to test resistance levels between the 0.7888 and 0.7900 levels. While the pair is still sitting around this region, buyers will need a fresh catalyst to send it higher for the time being.

AUD/USD has been on a tear since touching lows of 0.7504 in December, with today's high at 0.7905 meaning it has jumped over 400 pips in just about a month. Buyers are still in control of the pair right now, but as I mentioned there needs to be another catalyst to build a conviction to send it beyond 0.7900.

And that could come in the form of US December CPI data due later on today. So, do keep an eye out on that one.