AUD/USD Bounces Alongside Oil, Supported at 0.7500

AUD/USD Bounces Alongside Oil, Supported at 0.7500

8 April 2016, 06:44
Roberto Jacobs

AUD/USD Bounces Alongside Oil, Supported at 0.7500

AUD/USD is seen making a minor-recovery attempt so far this Friday, as higher commodities’ prices, especially oil, lift overall market sentiment.

AUD/USD extends beyond 0.75 handle

Currently, the AUD/USD pair rises 0.28% to 0.7537, easing-off fresh session highs posted at 0.7638 in the last hour. The tepid bounce in the Aussie can be explained by the recovery in the oil and copper prices, after the extensive fall seen yesterday. The US oil now gains +1.72%, Brent rebounds +1.20%, while copper prices rise +0.43%.

In addition, the overnight recovery in the AUD/USD pair further gained traction after the yen buying stalled and thus, provided the much-needed respite to the yen crosses, including AUD/JPY, which underpinned the AUD bulls.

Meanwhile, the major remained unperturbed by Fed Chair Yellen’s dovish comments and head higher in a bid to regain 5-DMA amid a data-empty Asian docket for the major.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7550/56 (psychological levels/ 5-DMA) above which gains could be extended to the next hurdle located at 0.7574/87 (1h 100-SMA/ 20-DMA). On the flip side, the immediate support located at 0.7508/00 (Mar 29 Low). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7475/50 (Mar 24 Low/ psychological levels).

(Market News Provided by FXstreet)

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