AUD/USD breaks range and approaches 0.7600

• AUD/USD breaks higher and rises modestly despite risk aversion.
• Markets back to normal following Trumps announcement.

The AUD/USD pair rose further during the US session and printed a fresh daily high at 0.7580. After moving sideways during most of the day, broke to the upside and rose modestly. The Aussie was unaffected following US President Trump cancellation of the meeting with Kim Jong-un.

Trump’s announcement triggered a decline in equity prices and increased the demand for safe-haven assets. AUD/USD remained steady and it even rose during the last hours.

AUD/USD continues to move with an upside bias supported by an uptrend line. If it manages to end the day at current levels it would be the highest close in a month. Today the pair resumed the recovery after a 2-day pullback. Yesterday, after the release of the FOMC minutes, the pair started to move to the upside again.

The recovery tone is likely to remain intact as long as AUD/USD holds above 0.7520/40. A break lower would change the short-term tone, favoring more losses.

Short-term technical levels

To the upside, resistance levels might be seen at 0.7590, followed by 0.7605/10 (May 22 high) and 0.7650. On the flip side, supports could be located at 0.7545, 0.7530 (uptrend line from May 9 low) and 0.7490/95.