After holding above long-term support at .7150 going into the end of the year, the Australian Dollar has started 2017 on a firmer note. Higher prices for Copper, Crude Oil and Gold combined with the sharp rise in Australian Service Sector activity have added to the positive fundamental tone.
The technical picture has also improved as general US Dollar weakness has lifted the Aussie above its 30-day moving average near .7340 for the first time since early November. This morning’s better-than-expected Trade Balance report should keep the currency well bid throughout the Asian session and into the weekend.
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With the US Non-Farm payroll data expected to print a little softer tonight, we see scope for the recent move in the AUD/USD to extend back to the December 15th high of .7430. We would consider that price a good level to exit long positions.
