AUD/USD testing post-GDP highs near 0.7230

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Mar 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The AUD/USD pair caught a fresh bid-wave over the last hours and reverted to post-GDP highs as risk-on trades heightened, with the Australian stocks extending further into the green zone.

    AUD/USD finds support just ahead of R1

    Currently, the AUD/USD pair rises 0.79% to 0.7231, reversing a brief downward spike to 0.7217 in the last hour. The Aussie extends its winning streak for the third straight session after the Australian Q4 GDP print outpaced estimates and surprised markets to the upside. The Australian economy expanded 0.6% in Q4 2015, beating forecasts of a 0.4% growth.

    While the ongoing risk-on rally in the Asian equities gathered pace and spurred a fresh bout of buying interest in the AUD/USD pair, sending it back to 0.7230 region. The Australian ASX 200 jumps +2.20% towards close, while the Nikkei rockets +4.40% and the Shanghai Composite bounces +2.25%.

    Looking ahead, there is plenty of risk events lined up for the Aussie this week, with the next being the US ADP report, Aus trade balance and the Chinese services PMI. While Friday’s retail sales data from Australia and US NFP will remain the main highlights.

    AUD/USD Levels to watch

    The pair finds the immediate resistance at 0.7250/58 (psychological levels/ Feb 26 High) above which gains could be extended to the next hurdle located at 0.7303 (Jan 4 High). On the flip side, the immediate support located at 0.7181/74 (10 & 200-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7141 (100-DMA).
    For more information, read our latest forex news.

Share This Page

free forex signals