The Aussie made a high overnight of 0.9504, it’s highest level since November last year.
Key for traders and the outlook is that it has broken out of the trading range which has constrained it for the past two months.
Equally important is that both the Kiwi and Canadian dollars were stronger against the US dollar overnight which means that this is not just a reaction – or misread – of the RBA’s rhetoric yesterday but rather a concerted move in the “Dollar Bloc”.
As the NAB noted earlier this week, the Aussie can now grind higher toward 96-97 cents.
The 0.9510/20 region is resistance in the meantime.