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AUD/USD stages solid comeback, regains 0.71 and beyond

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 10, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The AUD/USD’s recovery found fresh legs from the relief rally seen in the European stocks, driving the major to fresh session highs above 0.71 handle.

    AUD/USD eyes Monday’s high at 0.7132

    Currently, the AUD/USD pair rises 0.57% to 0.7113, having posted fresh session highs at 0.7118 last minutes. The ongoing recovery in the oil and European markets combined with increased demand for higher-yielding currencies drove the Aussie 80-pips higher from daily lows struck at 0.7038 in early Asia.
    Meanwhile, in absence of major fundamental news for the Aussie in the day ahead, the sentiment on the stocks and oil will lead the pair ahead of Yellen’s testimony due later in the NY session.

    Data-wise, Australian new home sales data was released earlier on the day, with the home sales climbing 6.0% m/m in December, after booking a 2.7% drop in November, marking the strongest monthly increase since November 2013.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7132/43 (Feb 8 High/ 100-DMA) above which gains could be extended to the next hurdle located at 0.7200/11 (round number/ 200-DMA). On the flip side, the immediate support located at 0.7063/48 (1h 50-SMA/ 20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7000/ 0.6993 (round number/ daily S1).
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