AUD/USD — Bulls Re-Take Short-Term Control

Boosted by the positive headlines around the expectations for a lift in tariffs by the US to China, the Australian Dollar has managed to regain the upside and trap sellers wrong-footed, as depicted by the where most of the volume transacted in the last 24h stands (0.7165) vs bullish close of 0.7195. The value in the Aussie market keeps pointing towards higher levels if we pay attention to the strongest correlations for the Aussie, which include the Chinese Yuan, DXY and equity performance (ES). That said, 0.7215/20 has been a major sticky obstacle to surpass through the week, hence a close above is still necessary to brighten the outlook for the Aussie, which remains supported by China’s trade hopes as the main driver, even as the domestic economy shows further cracks in its housing market.