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AUD/USD: Upside capped by hourly 50-SMA

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 16, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The offered tone in the AUD/USD pair remains intact in the mid-Asian trades, having found strong support at 0.71 barrier, as the demand for higher yielding currencies wanes on the back of risk-off sentiment, triggered by Paris terror-strike.

    AUD/USD trades above 5-DMA

    Currently, the AUD/USD pair trades -0.21% lower at 0.7115, consolidating in a 20-pips slim range. The Aussie faced stiff resistance near hourly 50-SMA placed at 0.7127 and drifted lower, only to find fresh bids at 0.7100 and rebounded higher towards 0.7115-20 region, where it now wavers.

    The AUD/USD pair remains supressed amid waning appetite for risker currencies, following weekend’s terror attack on Paris, in which around 130 people were killed. However, recovery in gold prices above 1190 mark on the back rising demand for safe-haven assets, keeps the downside restricted in the resource-linked Aussie.

    Further, traders continue to cheer last week’s upbeat Australian jobs data, which reduced RBA rate cut bets at its Dec 1 meeting. Meanwhile, focus now shifts towards Tuesday’s RBA minutes Wednesday’s Aus wage price index for further cues on the pair.

    AUD/USD Levels to watch

    The pair has an immediate resistance at 0.7123/29 (20-DMA/ Today’s High), above which gains could be extended to 0.7146 (50-DMA) levels. On the flip side, support is seen at 0.7100 (Today’s Low/ round number) from here it to 0.7085 (10-DMA).
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