AUD/USD fails to benefit from metals rebound, lower USD

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 26, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The AUD/USD pair caught fresh bid-wave last hours and retreated slightly from session lows, tracking the bullish run in its OZ sister and the risk-on trades in the equities.

    AUD/USD unable to extend beyond 0.7250

    Currently, the AUD/USD pair trades almost unchanged at 0.7238, hovering within a striking distance of fresh session lows reached earlier at 0.7231. The AUD/USD pair is seen trying hard to regain control, although lack clear momentum as the renewed weakness in the Australian stocks cap the upside somewhat. Australia’s ASX index is down -0.13% below 4900 levels, and bucks the trend seen its other Asian rivals.

    Moreover, the Aussie fails to benefit from the modest rebound seen in the base metals and broad based US dollar softness as the calm sets in before next week’s key risk events for the AUD. Next Tuesday, we have the RBA cash rate decision and the Aus GDP report is due out on Wednesday.

    In the day ahead, the sentiment on the global equities will continue to drive the Aussie ahead of the much awaited US Q4 prelim GDP estimate due later in the NY session.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7250/56 (psychological levels/ daily high) above which gains could be extended to the next hurdle located at 0.7300/03 (round number/ Jan 4 High). On the flip side, the immediate support located at 0.7220/19 (5-DMA/ 1h 20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7185/70 (10-DMA/ 1h 200-SMA).
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