AUD: Technical indicators favor the peeling back more of the recent gains - BBH

Analysts at BBH explain that the only major currency weaker than the Canadian dollar last week (-0.2%) was the Australian dollar (-1%) and the technical indicators favor the peeling back more of the Aussie's recent gains.  

Key Quotes

“The similar correlation between the Australian dollar and the two-year rate differential is at 0.48, and over the past decade, it rarely is above 0.5.  The Aussie's pullback last week held $0.7600, which is an important congestion area and the 61.8% of the gains it has scored since briefly dipping below $0.7500 on March 9.   The technical indicators favor the peeling back more of the Aussie's recent gains.   The price action reaffirms and strengthens the resistance around $0.7700 and sets up an important test on $0.7500, with modest support seen first near $0.7550.”