FxWirePro: AUD/USD Recovers Bearish Opening Gap, Struggles at 0.75 Handle

FxWirePro: AUD/USD Recovers Bearish Opening Gap, Struggles at 0.75 Handle

• Possibility of a hung parliament in Australia caused AUD/USD to open Monday with a bearish gap. 
• The major quickly reversed course as strong upward rally in the commodities prices, particularly gold and silver, lifted the bids for the resource-linked AUD.  
• AUD/USD edged higher from session lows at 0.7446 to hit highs of 0.7504 and is currently trading around 0.7490. 
• The pair unable to extend gains above 0.75 handle, Techs however, support upside in the pair. 
• Weakness only below 100-DMA support at 0.7440, drag till 0.7345 then likely. 
• On the upside, decisive break above 0.75 could see gains upto 0.7563 and then 0.76 levels. 
• Markets ignored mixed data from Australia, with inflation positively surprising, while building consents data came in worse-than-expected. 
• RBA’s cash rate decision due tomorrow along while Austalia elections outcome remains the key focus this week. 
• Australian elections over the weekend point towards a potential hung parliament, with the vote count to resume tomorrow. 
• For lack of conviction on technicals, we prefer to remain on the sidelines for now. 
  

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