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AUD/USD: Bulls fighting for control, near 50-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 5, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The recovery in the AUD/USD pair from lows faces stiff hurdle at 0.7150 levels and the pair struggles to extend beyond the last, as the dovish comments by RBA Governor Stevens continue to weigh on investors’ minds.

    AUD/USD supported near Wednesday’s lows

    Currently, the AUD/USD pair trades muted at 0.7147, recovering slightly from session lows struck at 0.7127 following RBA’s Stevens speech. The Aussie attempts a tepid recovery in mid-Asia, although remains pressured as markets continue to digest RBA Stevens’ comments, citing that the central bank would prefer an easing approach than a tightening one amid the ongoing growth transition.

    While the upside also appears capped as the greenback remains broadly underpinned after the Fed Chair Yellen reiterated on Wednesday that Dec Fed rate hike option is still on the table.

    Looking ahead, markets will continue to digest the recent comments from both the central banks’ chiefs while awaiting US weekly jobless claims and another bunch of Fed speaks due later in the day.

    AUD/USD Levels to watch

    The pair has an immediate resistance at 0.7177 (1h 50-SMA), above which gains could be extended to 0.7200 (round number). On the flip side, support is seen at 0.7127/11 (Today’s Low/ daily S1) from here it to 0.7077/73 (Oct 28 Low/ daily S2).
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