Forex: AUD/USD consolidates gains above 1.0400

FXstreet.com (Barcelona) - The Aussie dollar finally managed to follow through the key barrier of 1.0400, trading around 1.0440/45 as of writing on better risk-on tone.

Markets continue to look to Cyprus in order to define a clearer trend on Friday, although the solution remains pretty far at the moment. “The Cyprus story soured after the ECB said the country had until Monday to agree a bailout plan, otherwise it would cut emergency funding for the country’s banks. In addition, Cyprus’ central bank denied rumours the second largest bank, Poplar, is to be closed. Local media reported plans to overhaul the banking system, impose capital controls, and structure a bailout are being submitted to Parliament today”, commented Sean Callow, Strategist at Westpac.

At the moment, the cross is up 0.04% at 1.0441 with the next resistance at 1.0459 (high Mar.21) ahead of 1.0475 (high Jan.30) and finally 1.0485 (76.4% of 1.0599-1.0116).
On the flip side, a drop beyond 1.0415 (high Mar.15) would bring 1.0414 (61.8% of 1.0599-1.0116) en route to 1.0372 (MA200d).