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Aussie extends gains on the morning from below 0.9600

FXstreet.com (London) - The AUD/USD has continued it’s gains throughout the European morning session, forming a bullish flag on the 5 min chart.

Now trading above the pivot and printing a high of 0.9682, the pair has in fact pierced through the 0.9670 resistance line set back from last Wednesday’s price action when the pair dropped 80 pips on the day. However, the daily chart shows the bear trend still very much trading within the parameters of the descending channel and with momentum. 0.9705 comes as next key resistance with major support at 0.9500.

With a relatively light calendar in terms of Australian data this week, there are more May surveys today for the US heading into next week’s payrolls. The market expects a flat reading in the Richmond Fed and improvements in the Dallas Fed (from -15.6 to -10) and Conference Board Consumer Confidence (from 68.1 to 70.7). TD Securities said that they see mixed results across the three but upside risks for the most important Consumer Confidence survey. They also expect housing prices to remain strong with a +1% m/m gain in March, surpassing 10% y/y for the first time since April 2006.

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