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AUD/USD hits news session highs as industrial metals rally

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 22, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    The AUD/USD pair keeps pushing higher lock-stepping in with the oil and industrial metals amid persisting risk-on market profile.

    AUD/USD recovers 1 big figure from Friday’s low

    Currently, the AUD/USD pair rises 0.22% near fresh session highs of 0.7171, holding above 100-DMA support placed at 0.7136. The bid tone around the AUD strengthens this session, with the Aussie completely reversing Friday’s slide, as the strong pull back in the industrial metals alongside oil boosts the sentiment and refuels risk appetite across the board.

    Amid persistent risk-on environment, markets look to take the yield advantage and hence, prop up the demand for the higher yielding currencies such as AUD//USD. However, the bulls are trying hard to extend further on the back of a stronger US dollar against its major peers. The USD index rallies 0.23% to 96.85 levels.

    In absence of major economic data due later today, the Aussie will continue to track the commodities’ prices as well as the sentiment on the global equities. Meanwhile, from the US docket, the flash manufacturing PMI will be published.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7185/89 (200-DMA + Feb 18 & 17 High) above which gains could be extended to the next hurdle located at 0.7229 (Feb 5 High). On the flip side, the immediate support located at 0.7137/36 (1h-100-SMA/ 100-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7121/19 (1h 200-SMA/ 20-DMA).
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