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AUD/USD consolidating above 0.9600

FXstreet.com (Edinburgh) - The Aussie dollar keeps the bullish momentum at the beginning of the week, pushing the AUD/USD to consolidate recent gains above 0.9600 the figure.

AUD/USD extends the bounce of 0.9300

After bottoming in the area of 0.9320 in the last week – levels last seen in September 2010 – the Aussie dollar picked up pace and managed to regain the 0.9600 mark. The ongoing correction higher has been fuelled by extreme USD positioning as well as hopes of inaction from the RBA in its July meeting. “While the Fed will be critical in guiding the tapering debate, the China PMI will be important too for the AUD. The recent slump in the A$ looks like it is overdone in the short term. A bounce back towards 0.98 is possible before selling returns”, commented the Research team at Westpac.

AUD/USD critical levels

The pair is now advancing 0.55% at 0.9615 with the next resistance at 0.9655 (high Jun.14) ahead of 0.9665 (high Jun.13) and then 0.9675 (high Jun.6). On the flip side, a breakdown of 0.9538 (low Jun.17) would bring the psychological level at 0.9500 and finally 0.9430 (low Jun.13).

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