AUD/USD Struggles to Extend Recovery Above 0.7700
The AUD/USD’s
recovery finds stiff hurdle ahead of 0.77 handle, with more than half
of the bearish opening gap filled in amid stabilizing oil prices and a
broadly weaker US dollar.
AUD/USD continues to recover from 0.7631 daily lows
Currently,
the AUD/USD pair now drops -0.32% to 0.7700, flirting with session
highs reached at 0.7705 last hour. The sentiment towards higher-yielding
assets is seen improving over the last hours as the oil price recovery
gains further traction. Hence, markets now look to take the yield
advantage by bidding the Aussie and thus, helping it fill the bearish
gap.
Moreover, upbeat tone in the gold prices amid safe-haven
demand, also aid the recovery in the resource-linked AUD/USD. Nothing of
relevance in terms of macro news for the Aussie today, and hence, focus
remains on the oil and stock markets. Besides, Fed Dudley’s speech will
be closely heard for any hint on the Fed rate hike prospects.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7739/50 (2016 highs) above which gains could be extended to the next hurdle located at 07800 (round number). On the flip side, the immediate support located at 0.7678/72 (5 & 10-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7622/21 (1h 200-SMA/ 20-DMA).
