AUD/USD: consolidated after minor recovery to 0.74

AUD/USD is currently trading at 0.7361 with a high of 0.7380 and a low of 0.7353.

AUD/USD is in consolidation while profits were taken at 0.7402 the overnight highs. The commodity sector has helped support the recovery in the Aussie despite the divergences that markets were pricing in between the US dollar and other currencies where Central Banks are expected to cut rates. Meanwhile, the data has been spares across the board and the day ahead is mostly going to be focused the BoE, reminding markets of Brexit polls as we head towards June and the EU referendum.

BoE preview: a picture tells a thousand words

Analysts at Westpac explained that the Bank of England should keep rates at 0.5%, with policy firmly on hold ahead of the UK EU exit vote.

We also have Fed speakers with the Westpac noting the line up as, "Cleveland Fed president Mester (hawk/centrist, voter) speaks on inflation though the event is not open to the press. We hear from two other Fed voters, Rosengren (dove) and George (hawk) on the economy."

AUD/USD levels

While we are in consolidation, Valeria Bednarik, chief analyst at FXStreet noted that the 4-hours chart suggests that the recovery may extend, particularly on an upward acceleration above 0.7400. "The price is currently developing above a flat 20 SMA, while the technical indicators are standing above their mid-lines, although with no upward strength." Valeria added, "Above the mentioned resistance, the rally can extend up to 0.7440, the 38.2% retracement of this year's decline, while beyond this last, 0.7510, May 5th daily high, is the next probable bullish target."