The risk-sensitive Australian dollar rebounds as risk appetite returns. The pair has bounced off the 20-day moving average on the daily chart which coincides with the short-term support at 84.25.
General sentiment remains upbeat as the Aussie carries on the fourteen- month-long rally. Strong momentum above 84.85 points to 85.80 as the next target.
The bullish MA cross is another indication of recovery. As the RSI shows an overbought situation a temporary pullback towards 84.55 is possible.
