AUD/USD rising after the news from China

The Australian dollar continues its appreciation against the US dollar today. News from China that it is reducing the requirement for reserves from banks helps the currency.

Markets at this stage do not react so fiercely after the news, but it definitely helps risky assets. Or at least it doesn't kill the optimism that is building up this week.

AUD / USD is now trading up to four months high, just above the resistance range at 0.6818 - 22, crossing above 0.6832. With such momentum preserved, we expect a potential target of 0.7000 in the long run.

We have little resistance at 0.6865, with buyers aiming to take control of the area for future purchases, but the key level is at 0.6914. Break through the top and the bears will lose the pace.

Looking ahead, we still have a few more risky events today, such as the US labor market data and Powerll's 19 and 30 speeches.

Alternatively, in the event of a negative turn of events and a subsequent weakening of the Australian dollar, we would expect it to return back to the area of ​​the second break of the diagonal resistance at 0.67727.

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