February 9, 2023

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AUD/USD looks towards 0.8000 again as buyers keep with the break above 0.7800

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AUD/USD trades to fresh highs of 0.7880, its highest since 26 February

AUD/USD D1 10-05
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The AUD/USD chart is one that holds some similarity to the GBP/USD chart at the moment.

Much like how the latter looks to be targeting its February highs around 1.4200 next, AUD/USD looks to be targeting a push towards its own February highs at 0.8000.

The pair had struggled to hold a firm break above the 0.7800 level for almost two months but the dollar slump on Friday was a good enough trigger for buyers to pull off a technical victory in that regard.

There was still some resistance from swing region highs around 0.7837-49 but that looks to be giving way today as buyers inch closer towards 0.7900; securing firmer momentum towards testing the 0.8000 handle once again.

With the dollar keeping vulnerable, there is the potential for the pair to keep with this run especially with commodity prices outperforming (iron ore included), the Chinese yuan pushing to fresh highs against the dollar this year, and better risk sentiment.

You have to think that if China and Australia aren’t waging a geopolitical war as they are doing now, the pair would likely be trading above 0.8000 at the moment.

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