The AUD USD shrugged off early weakness and closed higher while remaining on path to test a major retracement zone at .7928 to .8382.
The AUD USD shrugged off early weakness and closed higher whileremaining on path to test a major retracement zone at .7928 to .8382.
Theovernight weakness was caused by an increase in trader aversion to riskafter North Korea launched a pair of missile tests as well as anunderground nuclear blast. This news caused shockwaves throughout thePacific markets late Sunday which spread across the globe throughoutthe trading sessions.
Just after a weaker New York opening thefinancial markets were hit with better than expected news regardingU.S. Consumer Confidence. Traders reacted by buying stocks and sellingthe Dollar as trader appetite for risk surged following theannouncement that Consumer Confidence had reached an eight month high.
Aslong as investors are growing more comfortable with the improving U.S.economic picture expect this to weigh on the U.S. Dollar and continueto support the upside momentum in the Australian Dollar.