AUD/USD and GBP/USD Break Higher as Post-NFP Dollar Turmoil Continues
- GBPUSD responds to July-March uptrend, needs 1.6750.
- AUDUSD bull flag engaged, calls for move above 0.9500.
- North American forex economic calendar light on Tuesday.
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The disappointing US Nonfarm Payrolls report for March has stoked a more violent than expected reaction in assets across the globe, though there may be few places more obvious than in FX markets.
With US economic data sputtering, not only has there been an unwind in risk assets (NASDAQ) and drive to relative safe havens (US Treasuries), there has also been a noticeable, surprising calm in two currencies as their respective economic data has proved resilient: the Aussie and the Sterling.
Between these two pairs, the bullish AUDUSD move may be more viable; we've been following the developing bull flag for several days and Aussie strength has been noted elsewhere (EURAUD post-ECB). For GBPUSD, another run at the yearly highs could represent a selling opportunity for a covering move lower as net-positioning is at a bullish extreme for the British Pound and at a bearish extreme for the US Dollar, per Senior Technical Strategist Jamie Saettele's recent COT analysis.
--- Written by Christopher Vecchio, Currency Analyst
To contact Christopher Vecchio, e-mail firstname.lastname@example.org
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.