The AUD/USD pair shot straight up during the session on Monday as the ISM numbers out of United States came in below 50, signaling that there could be some contraction in the economy. This of course led the market to believe that the Federal Reserve will not tighten their monetary policy anytime soon, and as a result gold and the Australian dollar but did quite well during the session. The real question of course is going to be whether or not this market can continue higher, and most importantly above the 0.99 handle. If we can do that, there is a real chance of this market could bounce back all the way to the 1.06 handle over time. On the other hand, we would be very leery of this market if a resistive candle formed just above.
Written by FX Empire