The AUD/USD has fallen for five consecutive weeks and with Iron-ore and Copper prices probing 3-month lows, we don’t see any technical indicators pointing to a price reversal this week. The AUD/USD peaked at .7835 on April 21st and posted a low of .7175 early last week and even though short-term indicators are beginning to get stretched, there is little upside momentum.
The Group of 7 finance minister’s meeting came and went with nothing more than the same well-worn bromides meant to create the illusion that the leaders of the global financial world are actually solving problems.
Still, the combination of stronger US data and signals from the FOMC that the normalization of rates can still be expected in 2016 helped the Greenback extend its recovery. Since May 3rd, the USD Index has traded higher for three consecutive weeks and gained ground on all the major pairs last week except for the Sterling.
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