By: Colin Jessup
The currency of the land down under seems to have some major bulls on its side. Price has traded as low as 0.9926 in the last 3 weeks but has pretty much been run by the bulls since hitting that low. Now we are facing a strong resistance zone at 1.0719 which has held all week, but have the fact that the 61.8% retracement level well below us at 1.0630 which is also providing support. If this resistance zone at 1.0719 is breached, we will potentially see a push up to 1.0820 and 1.0920 or higher. If the bears take over and price turns south we will have support at 1.0550 and 1.0400 below that.
The Key on Thursday could be the Chinese Manufacturing PMI, as Australia's biggest trade partner is expected to report slightly stronger growth. Retail sales potentially grew in July as well, to 0.3% after dropping 0.1% in June.
