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AUD/USD hits fresh weekly highs and retreats toward 0.7200

FXStreet (Córdoba) - AUD/USD rose marginally above previous highs and printed at 0.7234 a new 2-week high. Afterwards retreated and move toward 0.7200. It was trading at 0.7206/10, at the lowest level since the beginning of the American session.

Greenback is attempting to trim losses against commodity currencies, but still remains in negative territory in the market, except against the euro and the Swiss franc that are the worst performers.

AUD/USD rally continues

The pair is rising for the seventh trading day in a row as it continues to recover from 0.6930. If it continues to move to the upside it will face September highs that lie at 0.7275/80, before the psychological 0.7300.

From the level it had a week ago it rose 200 pips. On Tuesday the aussie receive a modest impulse with the decision of the Reserve Bank of Australia lo leave monetary policy unchanged and a more optimism outlook.

According to analysts from TD Securities, the RBA statement showed no recognition to the ongoing subdued retail spending data, neither to the housing construction cycle. “In our opinion, a lack of inclusion of these in no way excludes further downward revisions to GDP and CPI in the upcoming November RBA forecast update. In fact, we see this as likely given the challenging outlook. Although not our central view, as we enter 2016, we see greater risks that further rate cuts could be a necessary component in shifting growth back towards trend”.

Today’s upside moves in AUD/USD are mostly driven by a weak US dollar and a recovery in commodity prices.

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