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AUD/USD finds good support ahead of 0.7200

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 9, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The AUD/USD pair tested daily lows and jumped back higher in the mid-Asian, now attempting another run towards 20-DMA located at 20-DMA.

    AUD/USD underpinned by oil price recovery

    Currently, the AUD/USD pair trades 0.15% higher at 0.7227, heading for a retest of daily highs posted at 0.7237, near the 2-DMA barrier. The Aussie reversed a knee-jerk rally to fresh highs in reaction to upbeat China CPI data, and revisited daily lows in last hours, only to find strong support at the last and swung back towards 0.7225 region, where it now wavers.

    The AUD bulls accelerated to the upside on China inflation figures, only to realize shortly that the positive CPI data is temporary in nature due to seasonal factors. Subsequently, the pair fell sharply lower, although found some support in the oil price recovery and a broadly weaker US dollar.

    Looking ahead, the major will continue to track the broader markets sentiment in absence of fresh economic news in the US calendar. While all eyes now remain on Thursday’s Australian labour market report for fresh direction.

    AUD/USD Levels to watch

    The pair hovers above 0.72 handle with the immediate resistance seen at 0.7237/39 (daily high/ 20-DMA) above which gains could be extended to the next hurdle located at 0.7278 (10-DMA). While the immediate support is seen at 0.7200/0.7195 (round number/ 50-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7164 (100-DMA).
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