AUD/USD flirting with 0.9500

FXstreet.com (Edinburgh) - The bullish momentum of the Aussie dollar is lifting the AUD/USD to challenge the key barrier at 0.9500 on Monday.

AUD/USD bolstered by data

The upbeat tone from Australian retail sales, expanding above estimates 0.8% inter-month during September is the main driver behind the upside, helped at the same time by an annual increase of 7.6% in the House Price index and TD Securities Inflation growing at an annual pace of 2.1%. According to analysts at UBS, “The immediate outlook for the pair seems benign and Australian dollar bears will need patience. Our 1m, 3m and 12 m forecasts remain at 0.95, 0.93 and 0.85 respectively”.

AUD/USD critical levels

At the moment the pair is up 0.62% at 0.9496 with the next hurdle at 0.9600 (psychological level) ahead of 0.9624 (high Oct.25) and then 0.9714 (MA200d). On the flip side, a break below 0.9389 (low Oct.7) would open the door to 0.9365 (MA50d) and finally 0.9280 (low Sep.30).

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