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AUDUSD climbs to four-month high as copper hits another record

The pair reached 0.7224, edging into a key 0.7221 to 0.7228 swing zone that traders will watch for a break higher.

Reported · Written up by our desk · Major Pairs

The AUDUSD is extending higher and hit a four-month high, with the Australian dollar supported by a rise in commodity prices and fresh strength in copper, which reached another record high, Forexlive reports.

As Australia is a major commodity exporter, particularly of iron ore, coal, and liquefied natural gas, and a leading copper producer, higher commodity prices can improve export revenues and the country’s terms of trade, giving the currency a fundamental tailwind.

Technically, the pair has reached 0.7224, landing it within a swing area between 0.7221 and 0.7228. Forexlive said a sustained move above that zone would set up a test toward the May high at 0.72769 and could also bring focus to a longer-term double-top area near 0.72769 to 0.72823.

Forexlive added that the upside picture has been shaped recently by renewed market reaction after the stronger-than-expected US jobs report, which initially favored the US dollar, with moving averages tested after that data.

Latest closeCopper $6.606 ▲1.5%|Nat gas $3.008 ▲3.6%

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