The news flow over the past 24 hours could not have been better for AUD/USD bulls.
The FOMC event was viewed as being on the dovish expectations to undermine the USD nL1N28L1GT.
The "agreed to in principle" U.S.-China trade deal exceeded expectations to give EM assets and currencies a strong lift nL1N28M1JR and the exit polls indicate the Conservative will have a resounding victory, which will lead to the long-awaited Brexit deal nL8N28M6YT.
The optimists have been proven correct on all counts and cheerful investors will likely ensure a sizable risk rally through to the end of the year.
The AUD/USD traded to a fresh five-month high above 0.6930 and there isn’t much in the way of technical resistance this side of 0.7000.
While the 200-day MA at 0.6910 holds on dips, the AUD/USD is poised to make tracks for the July 19 high at 0.7082 in the days and weeks ahead.
The RBA won’t like it if the AUD/USD rise accelerates, but they don’t meet again until February and there is unlikely to be much in the way of communication between markets and the RBA through the holiday period.
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