By Fast Brokers – The AUD/USD continues to outperform and is currently challenging its highly psychological .90 level. The AUD/USD has held strong despite uncertainty in the risk trade due to the RBA’s relatively tight monetary policy stance as opposed to the central banks of other developed economies. That being said, should the Euro and Pound post a recovery the Aussie should benefit since uncertainty in the EU was a determining factor when the RBA decided to halt its rate increases at the last policy meeting. Positive performances in the Euro and Pound along with strong Australian economic data could propel the Aussie higher in anticipation of another rate hike. On the other 
hand, should uncertainty in the EU return and the Aussie underperform the Aussie could lose a bit of its luster since the RBA may be inclined to continue its wait and see approach to monetary policy. Hence, investors should keep an eye on how the overall risk trade performs along with any new news concerning Greece and the other PIIGS nations. Investors will receive some key data points from the EU and U.S. along with a public address from one of the RBA’s governors. Hence, volatility could pick up a bit as tomorrow’s trading session progresses.
Technically speaking, the Aussie has multiple uptrend lines serving as technical cushions along with intraday, 2/18, and 2/19 lows. As for the topside, the Aussie has multiple downtrend line serving as technical barriers. However, the downtrend lines are widening, meaning a topside breakout could yield considerable near-term gains. Meanwhile, the .90 level could continue to have a psychological influence on the Aussie.
Price: .9007
Resistances: .9009, .9026, .9045, .9058, .9073, .9093
Supports: .8981, .8964, .8949, .8930, .8917, .8903
Psychological: .90
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Market Commentary provided by Fast Brokers.
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