After spending the week below the 73c handle and touching an eighteen-month low of 0.7214 against the U.S Dollar, the local unit staged a recovery during the North American session and managed to close the week at 0.7314. The move was mostly linked to a broad-based USD sell-off and a rebound in base metals. Copper, iron ore and oil all rose as well as seeing a pull-back in the U.S Dollar index, the DXY closed the session at 96.13, 0.48% lower.
On another note, the RBA Governor Philip Lowe spoke before the House of Representatives delivering his half-yearly testimony, its seems both he and the RBA remained upbeat on economic growth prospects, and have indicated that the board was unlikely to raise rates for a while, but ruled out a rate cut. From a monetary policy perspective, the testimony offers little in terms of new information, and continues to flag an unchanged outlook for the RBA for some time. On the exchange rate, Governor Lowe noted that a lower AUD will be "helpful".
Looking ahead, there are no economic data releases locally today, tomorrow however the RBA is due to releases its monthly minutes.
On a technical front we have support sitting at 0.7270 and 0.7230, with resistance up at 0.7340 and 0.7380.