The recent strengthening of the Australian Dollar became possible thanks to higher commodity prices and more optimistic investors.
The currency strategists of Credit Agricole assume that the Australian currency will strengthen further . They say that the current strength shown by the Australian Dollar influences China, which is currently looking for the ways and means of stimulating the national economy. They will probably support the Aussie. Australia itself carries no major risks at this point.
Deutsche Bundesbank has recently decided to increase its the share of AUD-denominated assets in its currency reserves. In particular, they central bank is planning to buy some Australian bonds. The plan is to be implemented within a couple of weeks.
According to , the Aussie has suspended its rally against the US Dollar. ADUSUD seems to be finishing the current upswing, which is represented by wave А(С)/С of level Н16 or higher.
A break above the local high at 1.0442 will resume the rally in the form of А(С)/С of Daily. The closest major level of resistance is located at 1.0474. A further decline of the currency pair will resume the previous downswing, represented by wave А/В. If this is the case, the bottom of the MF sloping channel and pivot 1.0288 will be the closest major levels of support.
