AUD/USD Testing Monday’s High on Aus Data, Above 0.7600

AUD/USD Testing Monday’s High on Aus Data, Above 0.7600

12 April 2016, 05:16
Roberto Jacobs

AUD/USD Testing Monday’s High on Aus Data, Above 0.7600

AUD/USD extends gains beyond 0.76 handle post-China open, with the upbeat Australian confidence gauge adding to the favourable market sentiment in Asia.

AUD/USD rises for 3rd straight session

Currently, the AUD/USD pair rises 0.26% near fresh session highs of 0.7616, bouncing-off a brief dip to 0.7583 session lows. Fresh bids emerged for AUD/USD at 20-DMA (0.7583) in the last hour, and the prices jolted higher after the Australian NZB business confidence index better expectations and triggered renewed risk-on wave across the markets.

National Australia Bank (NAB) Business Confidence jumped to 6 versus 3 last, while the business conditions numbers for March hit fresh 8-year high, coming in at 12 versus 8 previously in February.

Moreover, a better risk environment persisting in the markets amid higher Japanese and Australian equities, also support the upbeat tone surrounding the Aussie. Looking ahead, attention now remains on the Chinese dataflow and Australian employment report due later this week for next direction on AUD/USD. In the meantime, the pair will continue to track the broader market sentiment as well as the oil price action.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7641/50 (daily R1/ psychological levels) above which gains could be extended to the next hurdle located at 0.7681/89 (Apr 4 High/ daily R2). On the flip side, the immediate support located at 0.7583 (daily pivot/ 20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7565/63 (5-DMA/ 1h 100-SMA).

(Market News Provided by FXstreet)

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