AUD/USD bounces-off 0.72, heads towards 100-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The AUD/USD pair found fresh bids near 0.72 barrier and bounced sharply higher in last hours as markets shrugged-off NAB hiking mortgage rates news and favour the higher yielding currencies amid ripening risk-sentiment.

    AUD/USD eyes 100-DMA at 0.7251

    Currently, the AUD/USD pair trades 0.47% higher at fresh session highs of 0.7241, extending the recovery on 0.72 handle. The bid tone around the AUD/USD pair keeps growing in tandem with the sentiment on Asian equities as the recent ECB decision sparked renewed wave of optimism and boosted the appetite for higher yielding assets.

    Among the major Asian indices, the Nikkei rallies 2.28% while the Australian S&P/ASX advances 1.70% so far with Chinese markets to follow suit on open.

    Earlier on the day, the Aussie dipped to 0.7198 lows after the media reported that NAB made changes to its interest rates on mortgages following CBA’s move yesterday. The recent reports led market to that RBA could cut rates at its next meeting.

    Nothing much of relevance is expected to be reported in the session ahead, with focus now shifting towards next Wednesday’s Aus CPI figures and the key FOMC statement.

    AUD/USD Levels to watch

    The pair has an immediate resistance at 0.7269/79 (h1 200-SMA + Oct 21 High), above which gains could be extended to 0.7300 (Oct 20 High + round number) levels. On the flip side, support is seen at 0.7198/7200 (Today’s Low + psychological levels) from here it to 0.7162 (Oct 8 Low).
    For more information, read our latest forex news.

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