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AUD/USD struggles to extend beyond 0.7100

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Having bottomed at 0.7075 levels at Tokyo open, the Aussie resumes its bullish run and now tries hard to extend further beyond 0.71 barrier.

    AUD/USD: a test of 50-DMA at 0.7130 on cards?

    Currently, the AUD/USD pair trades 0.23% higher at 0.7100, hovering close to fresh session highs of 0.7108. The Aussie extends its upbeat momentum into a fourth day today and looks to test 50-DMA, tracking the winning-streak in the oil prices. The US oil trades 0.66% higher at $ 33.45, while the Brent turns positive and rises above $ 35 mark, up 0.63% on the day.

    Hence, a better sentiment towards higher-yielding currencies continues to push the Australian dollar higher against its American counterpart. Moreover, improving price pressures in Australia as reflected by the recent CPI report, also add to the positive sentiment around AUD/USD.

    Looking ahead, the oil price action will continue to dictate the moves in the Aussie, while the key US GDP data due later today will be closely eyed.

    AUD/USD Levels to watch

    The pair heads higher and finds the immediate resistance at 0.7129/30 (Jan 28 High/ 50-DMA) above which gains could be extended to the next hurdle located at 0.7162 (100-DMA). On the flip side, the immediate support located at 0.7075/72 (Daily low/ pivot) Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7035 (5-DMA).
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