Daily Outlook

AUD/USD finished at week highs 0.7450 as commodities surged in the Chinese and US exchanges. Iron Ore is back above $80 and is supporting the view that China economy rebound is gaining traction. Combined with Trump US infrastructure plans the general outlook for the AUD is improving but the USD is still very strong.

AUD gains will be more pronounced against the Japanese Yen and Euro as they keep interest rates lower. The US interest rates are still rising with a 2^nd rate hike in June 2017 nearly fully priced in. US stocks are still also very strong closing at record highs and making gains 12 of the last 14 sessions since Trump won the US election.

The OPEC meeting on Wednesday this week will be the main risk event for the Australian dollar with danger growing of no agreement after news on Friday that Saudi Arabia would not be meeting with Russia on the sidelines on Monday.

AUD/USD 11/28/2016 12:43 AM  Trend daily chart (=)  Trend weekly chart (=) AUD/USD ST: break of a ST rising trendline support. Pivot: 0.7745 Our preference: short positions below 0.7745 with targets at 0.7150 & 0.6920 in extension. Alternative scenario: above 0.7745 look for further upside with 0.8080 & 0.8300 as targets. Comment: the RSI broke below a bullish trend line. Supports and resistances: 0.8300 *** 0.8080 *** 0.7745 *** 0.7447 Last 0.7150 *** 0.6920 *** 0.6820 **

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