AUD/USD: Bulls fight for control, clings to 1h 50-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The Australian dollar trades around a flat line versus its American counterpart in early Asia, with AUD/USD consolidating above 0.71 handle, little changed after the release of Aus wage price index.

    AUD/USD supported above hourly 50-SMA

    Currently, the AUD/USD pair trades modestly flat at 0.7112, oscillating in a tight 10 pips range. The AUD/USD pair wiped out early gains and now trades muted as the in-line with estimates Aus wage price gauge had negligible impact on the Australian dollar. The third quarter wage-price index gained 0.6% q/q.

    The Aussie found good support from the overnight rally in oil prices while the recovery in the copper prices also keeps the sentiment around the commodity currency lifted.

    However, the upside seems limited as the US dollar is expected to remain in demand amid increased Dec Fed rate hike chatter. The USD index hovers near multi-month highs posted at 99.83 on Tuesday.

    Nothing of relevance for the AUD this session, therefore, focus now remains on the US building permits and housing starts data due later in the NY session.

    AUD/USD Levels to watch

    The pair has an immediate resistance at 0.7133/40 (Nov 16/ 17 High), above which gains could be extended to 0.7179 (100-DMA) levels. On the flip side, support is seen at 0.7080 (Nov 16 Low) from here it to 0.7056 (Nov 11 Low).
    For more information, read our latest forex news.

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