AUD/USD bulls making back some ground, hunting down 0.7680

AUD/USD is picking up the pace somewhat in a recovery of the bearish start to the week where the price made a low of 0.7658. Spot is back to 0.7670 at the time of writing from highs of 0.7683 for the session.

Dollar index snapped a four-week drop - BBH

A choppy start to the week, the dollar is making tracks again with a recovery above the 100 handle last week on renewed reflation ideas with yields higher and the market pricing in a 100% rate hike for the Fed as soon as June and a 20% chance in March. The Aussie is also feeling some pressure from the recent IMF concerns and warnings to the RBA, more on that here: AUD/USD: early Asian supply continues, offers stemming from IMF warnings to RBA?

PBOC sets USD/CNY at 6.8898 vs 6.8819

AUD/USD levels

The price is under pressure having met recent highs for the year just shy of the 0.77 handle. Analysts at Commerzbank noted this when the market eroded the 2013-2017 downtrend recently and cleared the 0.7645 Fibo resistance.  "In doing so, this has introduced scope to the 0.7778/.7850 2016 highs and the 38.2% retracement," suggested the analysts, adding, "Directly above here lies the 200-month ma at 0.7930. Very near term we would allow for a dip to 0.7470/.7490 ahead of further gains."