The dollar is slightly weaker on the day as we look towards European trading and the more positive risk mood to start the week is helping to underpin the aussie and kiwi, as buyers stay in search of an upside break. I'll let the charts do the talking.
The jump in AUD/USD above 0.7000 saw the first daily close above the figure mark since August last year. The 0.7000 level has been a key psychological resistance for the pair in the latest upside run but that looks to be giving way now. As it comes alongside a potential breakout in equities, there is scope for the upside to extend.
The first stop will be the August highs at 0.7125-36 before looking towards the May and June highs from last year at 0.7265-83.
In the case of NZD/USD, the pair is breaching daily resistance from the August high at 0.6468 but more importantly also pushing past notable resistance at 0.6500. That region has proven to be an impediment for buyers since December and an upside break here would allow for a further push towards the May and June highs of 0.6568-75 next.
