AUD/USD breaks through 0.72 and beyond – fresh 3-week tops

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The bid tone around the AUD/USD pair keeps growing bigger, with the Australian dollar on a roll higher for the third consecutive session versus the US dollar.

    AUD/USD supported above 50-DMA

    Currently, the AUD/USD pair trades 0.56% higher at 0.7207, near the vicinity of fresh three-week highs scored at 0.7216. The Aussie was boosted by fresh buying interest at the hourly 20-SMA and shot higher thereon, finally breaking through the crucial 0.72 barrier.

    The Aussie remains heavily bid and tests fresh multi-week highs on the back of rising commodity prices, which offers some respite to the miners in the economy. Copper prices on the Comex are gaining 0.52% while the US oil on NYMEX is rally over 1.80%. Gold prices are also sitting near fresh two-week highs near $ 1150.

    The latest upsurge in the AUD/USD pair is led by the RBA after the central bank left its monetary policy unchanged and sounded more optimistic on the economy.

    Meanwhile, focus now shifts towards the FOMC minutes release, which may trigger further selling pressure on the US dollar, as the minutes are widely expected to come out dovish.

    AUD/USD Levels to watch

    The pair has an immediate resistance at 0.7282 (Sept 17 & 18 High) levels, above which gains could be extended to 0.7198 (Sept 21 High) levels. On the flip side, support is seen at 0.7174 (hourly 20-SMA) levels from here it to 0.7315 (100-DMA).
    For more information, read our latest forex news.

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