AUD/USD upside stalled around 0.9700

FXstreet.com (Barcelona) - The steep correction higher of the Aussie dollar continues to struggle to overcome the key 0.9700 handle on Thursday, retracing some ground to the 0.9670 region.

Hopes that the Federal Reserve would stick for longer to the current programme of stimulus are keeping the risk appetite on the right footing in the European evening. Poor data from the US economy shed a ray of light on the high-beta currencies, commodities and risk-related assets in general, taking a toll on the buck at the same time.

AUD/USD is now up 0.38% at 0.9670 with the next hurdle at 0.9696 (high May 28) followed by 0.9713 (MA10d) and then 0.9741 (high May 24). On the downside, a breach of 0.9570 (hourly high/lows May 29) would bring 0.9488 (low Oct.5 2011).