• AUD/USD 0.71 handle breached
  • Australia consumer spending improved
  • Ascending triangle spotted

The AUD/USD’s strong rally yesterday took out the 0.71 handle due to the weakening of the U.S. dollar amid the deteriorating political tension between the U.S. and China after the U.S. Justice Department indicted two Chinese nationals of espionage, accusing them of stealing data of weapons designs, drug information, software source code and personal data.

June has seen an increase in consumer spending of 2.4% in Australia led mainly by the food and apparel industries. Despite so, there was a slowdown in June as compared to May, where consumer spending rose by 16.9% after the easing of lockdown measures which revived businesses.

At the moment, we are seeing the formation of an ascending triangle for AUD/USD on the H1 chart. With the weakening of the U.S. dollar and the positive retail sales figure coming out of Australia, we may be seeing a resumption of the rally from AUD/USD at least in the short run.

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By Gim Hong Lee

Gim Hong has been a full-time currency trader for more than 2.5 years, focusing on day and swing trading of major currencies and their crosses. He is a frequent contributor of currency and economic analysis in Forex Trading Asia. Graduated from Columbia University in the City of New York with a bachelor’s degree in applied mathematics and statistics, the nerdy side of Gim Hong enjoys learning about data analysis, machine learning and their applications in currency trading.

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