AUD/USD catches fresh bid, swings back to 0.7115

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The AUD/USD pair stalled its 2-day decline ahead of 50-DMA and now trims losses, swinging back above 0.71 handle, as the focus continues to remain on the oil trends.

    AUD/USD finds support above 50-DMA at 0.7087

    Currently, the AUD/USD pair drops –0.60% at 0.7114, reversing a brief dip to session lows posted at 0.7094. The Aussie recovers a part of RBA’s Edwards-induced losses and now attempts to extend further beyond 0.71 handle as the risk-off moods appear to have cooled-off a bit as the Asian indices are seen paring losses, especially the Japanese stocks.

    Earlier in Asia, RBA’s Edwards talked down the Aussie, which triggered fresh selling in the AUD/USD pair, knocking-off the prices below 0.71 handle. RBA’s Edwards said, he would be more comfortable with AUD/USD at 0.65. Further, the overnight drop in the oil prices following Saudi’s refusal to slash output and reports of record high US crude reserves, weighed on the resource-linked Aussie.

    Looking ahead, all eyes remain on the US docket, with the crucial US CPI figures lined up for release, while oil price action also will be closely watched.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7135/42 (100-DMA/ 1h 100-SMA) above which gains could be extended to the next hurdle located at 0.7185/89 (Feb 18 & 17 High). On the flip side, the immediate support located at 0.7094/87 (daily low/ 50-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7062/60 (Feb 12 & 5 Low).
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