AUD/USD Struggles with 0.7800, Risk-on Back in Vogue?

AUD/USD Struggles with 0.7800, Risk-on Back in Vogue?

21 April 2016, 06:39
Roberto Jacobs
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AUD/USD Struggles with 0.7800, Risk-on Back in Vogue?

Having found solid support near 0.7785/90 band, the AUD/USD pair attempts to extend gains beyond 0.78 handle, following in-line with expectations Australian business confidence numbers.

AUD/USD hits new session highs

Currently, the AUD/USD pair now gains 0.08% to 0.7805, having printed fresh session highs at 0.7806 some minutes ago. The Aussie prolongs its upward trajectory into fifth day this Thursday as the bulls cheer a solid rebound in the oil prices and the recent strength in the gold prices as well.

The AUD/USD pair is now seen gathering pace for further upside toward ten-month tops as the latest NAB confidence gauge showed both a resilient non-mining recovery and an outlook that has continued to improve, although the confidence figures matched estimates.
National Australia Bank (NAB) Q1 business confidence came in at 4 , prior was 5, revised from 4, while conditions stood at 9 versus prior 10, conditions for next 3 months increased to 15 from 13 last.

Moreover, upbeat sentiment around the Asian equities also underpinned the higher-yielding currency AUD. Next of note for the Aussie remains the US weekly jobless claims and Philly Fed manufacturing index due for release in the NA session.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7826/30 (Apr 19 & 21 High) above which gains could be extended to the next hurdle located at 0.7900 (June 2015 high). On the flip side, the immediate support located at 0.7762/54 (5-DMA/ 1h 100-SMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7716/0.7697 (10-DMA/ 1h 200-SMA).


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