Australian Dollar hits a seven-week high on nothing Australian
The Aussie is trading just above 0.7050 after a gain of not quite two tenths of a percent, its best level in seven weeks and the first time since mid-June that price has held clear of the 50-day Exponential Moving Average (EMA) near 0.7000.
The Australian Dollar has reached a seven-week high, trading just above 0.7050, its best level in seven weeks and the first time since mid-June that it has stayed above the 50-day Exponential Moving Average near 0.7000. Despite Australia's interest rates being cut, the Australian Dollar is climbing as a high-beta expression of a falling US Greenback, not due to domestic yield changes.
Economic data from Australia, including rising activity and construction spending, also contributes to the positive sentiment. The RBA's decision to hold onto a 4.35% cash rate, despite expectations of further increases, has created a policy spread favoring the Australian Dollar. The currency remains below its May peak, and market sentiment is currently bullish, with the next resistance at 0.7100 and support at the 50-day EMA near 0.7000.
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