COMMENT-AUD/USD bulls like the techs, need data to cooperate

AUD/USD rallied Monday and pierced the 21- and 200-day moving averages which reinforced already bullish tech signals. Investors now await a slew of U.S. data to see if these signals are validated or not.

The large August monthly bullish hammer candle forming, as well as the large August 5 daily bull hammer, suggests that AUD/USD bears are losing their grips.

Daily and monthly RSIs are rising and are not overbought which suggests that shorter-term and longer-term upward momentum is in place.

The daily cloud will begin thinning and risings again on August 15. The cloud may become magnetic again as it did during last week's AUD/USD rally.

U.S. July CPI, PPI, retail sales, along with weekly claims, reports are key risks to see if AUD/USD's recent rally extends.

Should pricing and sales surprise to the downside, and claims indicate the slow upward trend in joblessness is extending, U.S. yields (US2YT=RR), US10Y and the U.S. dollar could sink.

Those slides may occur as investors are likely to expect the Fed to cut more aggressively than is currently expected.

A more aggressive cutting cycle (SRAH26) may increase the Australian dollar's yield advantage over the U.S. dollar which could underpin AUD/USD.

AUD/USD bulls may then test key impediments near 0.6800 and 0.6900.

For more click on