AUD/USD retakes 0.9800

FXstreet.com (Barcelona) - Increasing risk appetite is now lifting t he Aussie dollar beyond the key resistance at 0.9800 on Monday, printing fresh session highs at the same time.

The AUD is reverting two consecutive weeks of closing in red, falling from levels above 1.0300 to last week’s lows in t he boundaries of 0.9700. According to Strategists Sean Callow and Jonathan Cavenagh at Westpac, “Since we expect the US recovery to remain sluggish, keeping the Fed on hold for some time yet, we do not consider this month’s USD rally to be the start of the long awaited (and very plausible) multi-year up trend in USD/majors. Hence our base case remains that AUD/USD will recapture 1.00 in coming weeks, even though the broad trading range has surely now ratcheted lower”.

AUD/USD is now up 0.55% at 0.9811 and a surpass of 0.9831 (high May 17) would open the door to 0.9913 (high May 16) and finally 0.9920 (high May 15).
On the flip side, support levels align at 0.9711 (low May 17) ahead of 0.9627 (low Jun.4 2012) and then 0.9581 (low Jun.1 2012).