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AUD/USD firmer, tests 100-DMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 23, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - A renewed bout of selling interest seen in the US dollar, drives the AUD/USD pair beyond the 100-DMA resistance placed at 0.7252 and now heads higher for a test of the hourly 200-SMA.

    AUD/USD climbs further on USD weakness

    Currently, the AUD/USD pair trades 0.67% higher at fresh session highs of 0.7257, extending gains beyond 100-DMA. The fresh sell-off in the US dollar against its major competitors, mainly triggered by the EUR/USD recovery, lifted the bids on the Aussie pair.

    Moreover, the improving appetite for risky assets also continues to bolster the demand for higher yielding currencies such as the AUD. Among the major Asian indices, the Nikkei extends the rally by 2.60% while the Australian S&P/ASX climbs nearly 2% so far.

    While recovery in the commodities space also boosts the Aussie rally. The US oil prices are rising 0.50%, gold is up 0.25% and copper trades marginally lower. The AUD traders appear less impacted by the recent RBA rate cut chatter following mortgage rate hikes by the country’s biggest banks.

    Nothing much of relevance is expected to be reported in the session ahead, with focus now shifting towards next Wednesday’s Aus CPI figures and the key FOMC statement.

    AUD/USD Levels to watch

    The pair has an immediate resistance at 0.7269/79 (h1 200-SMA + Oct 21 High), above which gains could be extended to 0.7300 (Oct 20 High + round number) levels. On the flip side, support is seen at 0.7198/7200 (Today’s Low + psychological levels) from here it to 0.7162 (Oct 8 Low).
    For more information, read our latest forex news.

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