The AUD/USD pair rose rapidly during the session on Thursday as the ECB looks set to buy “unlimited” bonds out of their region. This of course should equate to further easing, and as such the gold market should get a bid again. This in turn should affect the value of the Australian dollar, and it looks like we have returned to the old correlations of gold in the Aussie dollar for the last 24 hours.
The 1.03 level still looks to be rather resistive to us, and until we can get above it on a daily close we wouldn’t buy this market. In fact, there is a four hour shooting star that has just formed based upon this resistance area. If we slip a bit lower, we should continue all the way down to parity. If we break above the 1.03 on a daily close however, we feel that 1.05 would be the next target.
Written by FX Empire