Since the 1 of June of 2012 the AUS/USD pair has increased from 0.99 cent to $1.0596 level or around 7%. The new trend seem to have reach exhaustion and it could go into correction in the coming weeks. Currently there is a resistance level forming in the $1.06 mark with an expected support around the $1.02 level. It is still early, and a confirmation will be needed for the price to fall to and around $1.02 or beyond.
A triple top could be also forming, a sign that there isn’t much room to push the Australian dollar upwards. In the current global situation, the Australian dollar could suffer from the recovery of the USA and stabilization in Euro Zone. Furthermore, a more moderated China growth could also impact the AUD along with fresh concern about investment into the Australian mining sector. The question arising is, if there isn’t mining boom in Australia, what will keep the economy afloat?
Traders should follow the AUD/USD as a good chance to go short could arise sooner than later. If so, it shall be for small period of time until further expectation about where the global economy is heading and how will impact the Australian Dollar.