Aussie dollar breaches through .77 cents

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The Australian dollar has shot through the .77 cents level despite being rejected in that range several times before.

“The pall has lifted in the past 24 hours as traders voted aggressively that Hillary Clinton is going to be sitting in the Oval office come January,” said Greg McKenna, chief market strategist at CFD and FX broker AxiTrader.

That’s seen the Aussie dollar climbed to 0.7725 this morning just below the recent high of 0.7731 and not far below the 0.7750 region where the Aussie dollar has been consistently turned back over recent months.

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McKenna added, “Uncertainty and a lack of risk appetite have been the only real negative for the Aussie dollar recently.

However, he said, “But it’s looking like a Clinton victory, even with a stronger US dollar, could be the catalyst for the Aussie to trade toward the year’s high above 78 cents.”

According to McKenna, despite some headwinds, the Aussie has stayed strong up near the top of the range.

“Based on the charts, the Aussie is going to break wide and low sometime soon. But the price action suggests underlying strength,” he added.

Recently local big banks have been recalibrating their fair value models to a value around 77 cents.

“That means for all bearishness out there the key drivers of the Aussie dollar say it’s priced about right here at 77 cents,” McKenna said.

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