On the daily chart, the australian dollar shows a break on the symmetrical triangle at 0.7210 . The 14 day moving average also shows breaking the 0.7210 level on the triangle. The base of the triangle high 0.7325 low 0.6840 = 0.0485 pips potential move to the target level of 0.7695 from the triangle break clearly visible at 0.7210. The 14 day RSI touched the overbought level at 70 and pullback at 67.50 denotes due corrections of the spot level at 0.7500 before it gains momentum again to the short-term target 0.7695.
The 10 minute chart below shows a rally to 0.7485 high yesterday as the aussie followed the path of the iron ore price ( 19.5% Monday), plus better than expected Aus Feb NAB Business conditions index 8 versus 5 Jan. Business confidence 3. However, RBA Deputy Gove Lowe said low inflation providing scope for more ease if needed and China's Trade data was much lower than expected $32.59 B versus $50 B forecast while exports was -25.4% y/y, imports -13.8%. The australian dollar eased down to 0.7410 in Europe as equities fell.