AUD/USD Upside Capped at 0.7700

AUD/USD Upside Capped at 0.7700

30 March 2016, 12:44
Roberto Jacobs

AUD/USD Upside Capped at 0.7700

The upside momentum around the Aussie dollar has faltered ahead of the 0.7700 handle today, with AUD/USD retreating towards the 0.7665/60 band.

AUD/USD focus on US ADP

Spot is now advancing for the third consecutive session so far, extending the rebound from last week’s troughs around 0.7470 to today’s fresh 2016 highs in the 0.7700 neighbourhood, levels last seen in July 2015.

The greenback continues to trade on the defensive today following the dovish tone by Chief J.Yellen at her speech on Tuesday, adding extra oxygen to the rally in the risk-associated assets and ahead of the upcoming US ADP report (194K exp.).

AUD/USD levels to watch

At the moment the pair is up 0.51% at 0.7666 facing the next hurdle at 0.7699 (2016 high Mar.30) ahead of 0.7739 (monthly high Jul.1 2015) and then 0.7851 (monthly high Jun.18 2015). On the other hand, a break below 0.7530 (20-day sma) would open the door to 0.7413 (low Mar.16) and finally 0.7249 (55-day sma).

(Market News Provided by FXstreet)

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