The currency traded down to an overnight 0.5040 low overnight as the Euro came under pressure. Weakness in the Eurozone will continue to take some of the gloss off the AUD in terms of its attempt to rally on a global economic recovery. This was again highlighted recently with the fall in the Euro on the back of expectations of further softness in the German economy. The AUD has been benefiting from the view that the US economy is going to emerge from the current slowdown. Friday s US employment report will be the next major focal point.
Bullish divergence warns against being too bearish in the near-term.