AUD/USD: relentless and underpinned by oil

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 9, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    AUD/USD broke up out of that sideways drift and phase of consolidation on improved risk sentiment in the European session and continued on the bid on the back of the oil price rallying in the US shift.

    AUD/USD is subject to the action in the commodity sector, and oil continues to dominate the theme there while iron ore and steel making ingredient and copper are also making the headlines this week and underpinning the Aussie.

    Today, WTI has rallied on the back of the EIA weekly oil inventories coming mostly in line with expectations while a draw in gasoline supported the move higher, -4526k vs 1500k expected. US oil has reached $38.07 so far on the session and the Aussie 0.7524 the high.

    AUD/USD levels

    AUD/USD continues with a bullish bias and has not looked back since breaking up above the weekly cloud at 0.7378. A break here and closes above the 0.75 handle for the week leaves the door open for further gains towards 0.7600 and June 2015 lows. On a correction, the 8-month resistance line previously (0.7331) combined with 0.7320 is a key support area.
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