AUD/USD flirting with 0.9100

FXStreet (Edinburgh) - The bullish momentum in the Aussie dollar is losing some vigour at the moment, with the AUD/USD retreating to the area around 0.9100 the figure.

AUD/USD is ytd highs

The increasing risk-on sentiment plus positive data releases in Oz as of late lifted spot to fresh 2014 highs just above 0.9110 on Thursday. The pair drifted lower since then although it keeps the upper band of the range so far, after Governor Stevens’s testimony ruled out further rate cuts. There was no relevant docket in Australia today, leaving all the action for February’s Payrolls (150K) due later. “This risk is that rate hike expectations are brought forward in coming weeks to later this year and further supports the AUD. We see scope for a move back to .92/.93 in the current environment”, observed Greg Gibbs, FX Trading Strategist at RBS.

AUD/USD key levels

The pair is now up 0.02% at 0.9090 facing the next resistance at 0.9113 (2014 high Mar.6) followed by 0.9168 (high Dec.2) and then 0.9172 (200-d MA). On the flip side, a breakdown of 0.9007 (low Mar.6) would allow 0.9000 (psychological level) and then 0.8891 (low Mar.3).