Aussie stretches gains to fresh highs in a month

Technical Analysis

Author: Justin Low | audusd

AUD/USD trades to a fresh one-month high of 0.7425

AUD/USD D1 03-09
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Buyers are now looking to contest the 4 August high @ 0.7427 and are keeping poised in search of a firm break above the 0.7400 handle today.

The sentiment in the pair this week has been favourable for the aussie and the overall view on the pair remains unchanged from yesterday:

For now, the technicals are supportive for the aussie against the dollar and it points towards a potential test of 0.7400 again, where upside momentum stalled previously during July and August trading.

As such, that offers a key line in the sand for buyers to contest in order to establish any fresh upside leg while sellers will have to defend that to hold their ground.

As things stand, the dollar side of the equation is a key consideration this week with the US non-farm payrolls release tomorrow today a key risk event.

That will set the tone towards the end of the week but a poor jobs report may yet spur a fresh break for AUD/USD to the upside back towards 0.7500 potentially.

Otherwise, we may see more of a middling tone ahead of the weekend with 0.7400 capping gains with downside limited closer to key near-term levels at 0.7275 0.7300 and 0.7316 0.7344.
As highlighted above, a lot depends on the US non-farm payrolls release later today to validate or invalidate the latest push higher in the pair.

But for now, aussie buyers are certainly showing that they are more than ready to capitalise on a poor report and secure a fresh upside break towards 0.7500.

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