Nov 25 (Reuters) – The Australian dollar is set to close the month in a strong position, posting the largest monthly gain since April. Following the September-October decline versus the U.S. dollar, the Aussie is also positioned to resume the underlying and uninterrupted bull trend seen between March and August.
Current bullish themes could still unravel before the year is out, but November’s performance, if it cancels out previous monthly losses, puts the AUD in a good position for the fourth quarter, too.
Forex markets remain volatile, and with U.S. Thanksgiving shaping an early month-end and risk sentiment steadying, opportunities could arise to join the AUD bull trend at cheaper levels. However, the broader dollar weakness and a run of positive Australian data should limit any AUD/USD pullbacks.
Daily AUD/USD action shows price baulking ahead of the 0.7413 September high, but a break here brings August 2018 levels into play and the 0.7677 June 2018 peak. The last Fibonacci retracement of the 0.8136-0.5510 January 2018-March 2020 drop is at 0.7516.
For more click on FXBUZ
AUD/USD monthly candle chart: https://tmsnrt.rs/2KFzVY8
(Peter Stoneham is a Reuters market analyst. The views expressed are his own)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.