AUD/USD regains 0.7600 amid positive equities, oil

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 7, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The AUD/USD pair is seen reversing a downward spike post-China open, and now extends higher on the bids as higher oil and stocks keep the sentiment buoyed.

    AUD/USD finds bids just below 20-DMA at 0.7693

    Currently, the AUD/USD pair gains 0.14% and trades at 0.7610, heading for a retest of daily highs 0.7629 in early trades. The Aussie keeps the bid tone intact and tries hard to extend gains beyond 0.76 handle as the US dollar remains largely subdued against its major peers, with the Asian trading digesting the more dovish view reflected by the FOMC minutes published overnight.

    Moreover, the upbeat risk sentiment on the back of oil rebound continues to underpin the demand for the higher-yielding currency AUD. Among the Asian indices, Japan’s Nikkei trades +0.17% higher, Australia’s ASX 200 index advances +0.62%, while the Shanghai Composite index extends the wobble for the second day in a row.

    Meanwhile, markets shrugged-off dismal Aus construction index figures and now look forward to the US weekly jobless claims for fresh cues on the major ahead of Fed Chair Yellen’s speech scheduled in the Asian morning tomorrow.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7643/50 (daily R1/ psychological levels) above which gains could be extended to the next hurdle located at 0.7673/74 (Apr 4 High/ daily R2). On the flip side, the immediate support located at 0.7580/65 (1h 50 & 20-SMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7508/00 (Mar 29 Low).
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