AUD/USD Reclaims 5-DMA Amid Stabilizing Equities

AUD/USD Reclaims 5-DMA Amid Stabilizing Equities

2 May 2016, 04:48
Roberto Jacobs

AUD/USD Reclaims 5-DMA Amid Stabilizing Equities

The AUD/USD pair quickly reversed a brief dip below 0.76 handle and climbed back higher in the Asian traders, as risk sentiment appears to get better amid holiday-thinned trading.

AUD/USD eases-off daily highs

Currently, the AUD/USD pair advances 0.17% to 0.7615, having posted day’s high at 0.7622 and day’s low at 0.7594. The Aussie is seen making minor-recovery attempts from NY low at 0.7588 reached last Friday amid stabilizing Asian equities after the huge gap down opening.

However, the upside lacks momentum as the latest Australian economic news disappointed bulls, weighing down on the Aussie’s recovery mode. The National Australia Bank (NAB) Business Confidence & business conditions came in at 5 (prior 6) and 9 (prior 12) respectively.

While lower oil prices combined with dismal Chinese manufacturing PMI reports, also weighed on the resource-linked Aussie. Looking ahead, we have a big week for the AUD, with a string of key economic releases due later this week, while the RBA cash rate decision due tomorrow also remains on top of the investors’ minds.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.766/72 (10 & 20-DMA) above which gains could be extended to the next hurdle located at 0.7700 (round figure). On the flip side, the immediate support located at 0.7584/62 (daily S2/ 50-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7545 (Apr 27 Low).


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