AUD is showing signs of strength – risk reward favours being long

AUD has generally been an under-performer relative to NZD and CAD – and that may continue to be the case going forward – however, it looks likely to us that AUD will also benefit from the macro tailwinds supporting the other G10 commodity currencies and therefore it should outperform USD and JPY.

AUDUSD has found support at the 76.4% retracement of the December 2017-January 2018 rally at 0.7652. In addition, it will confirm a double bottom off there with a close above 0.7727 which, if seen, would target 0.78.

AUDUSD remains in a steady though gradual uptrend and with the trend line across the lows coming in just below current levels at 0.7617 risk/reward is attractive for longs.