The Australian dollar is recovering quite cheerfully.
The Aussie got support from the commodity and stock markets.
The iron ore has reached $51 ($51.12), the oil increases the second day, the precious and non-ferrous industrial metals are also rising in price.
It’s also worth to pay attention to the meeting of the RBA. The fact is that the meeting of the Reserve Bank of Australia will be the first meeting of the Central Bank after the "Brexit" next week. And the RBA decision will be a kind of indicator of the sentiment of other central banks.
If the world's rating agencies forecast the UK recession in the near future, then the RBA will take preventive measures. The RBA may lower the rate from 1.75% to 1.50%.
Today, the new home sales showed a decline, - 4.4% in May after - 4.7% in April.
However, if the commodity markets continue to rise, the pair AUD/USD can consolidate in the range of 0.7410 - 0.7445 and grow. If the support is weakened, the pair will resume the decline in anticipation of the meeting of the RBA.
How to trade
We would buy call options if the pair rises above 0.7410.
Target price: 0.7410
Close price: 0.7436
Expiry time: 20:00 GMT