AUD/USD Pulled Lower by Oil, Trades Around 5-DMA

AUD/USD Pulled Lower by Oil, Trades Around 5-DMA

29 March 2016, 10:59
Roberto Jacobs
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AUD/USD Pulled Lower by Oil, Trades Around 5-DMA

AUD/USD, which traded at three-day high earlier today, fell into losses, tracking weakness in oil prices.

Rejected at 0.7570

Prices turned lower from 0.7570 levels as oil benchmarks fell on oversupply concerns. Growing fears that a recovery in oil has ended is also stoking fears about a possible end in recovery in other commodity prices.

Consequently, AUD/USD dropped its 5-DMA level of 0.7526. Oil is likely to remain a main guiding force for Aussie and other commodity currencies ahead of the NY session, where by focus would shift to Fed President Janet Yellen’s speech.

AUD/USD Technical Levels

The immediate hurdle is seen at 0.7562 (10-DMA), above which prices could rise to 0.76 handle. On the other hand, a break below 0.7526 (5-DMA) would open doors for a re-test of previous day’s low of 0.7493.

(Market News Provided by FXstreet)

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