AUD/USD: Upside Gathers Pace Ahead of RBA, 0.7670 Eyed

AUD/USD: Upside Gathers Pace Ahead of RBA, 0.7670 Eyed

2 May 2016, 12:55
Roberto Jacobs

AUD/USD: Upside Gathers Pace Ahead of RBA, 0.7670 Eyed

The AUD/USD pair once again found fresh bids near 0.7595 region and bounced back higher above 0.76 handle, now flirting with highs around 0.7630.

AUD/USD: RBA, economic releases in focus

Currently, the AUD/USD pair advances 0.46% to fresh session highs of 0.7628, making headway towards 0.7670 – strong upside barrier. The Aussie caught fresh bid-wave and swung back higher amid positive sentiment witnessed on the European indices and stabilizing oil prices.

Moreover, markets take the upcoming RBA cash rate decision as an excuse to wind up shorts, especially after last week’s massive sell-off, resulting in the ongoing short-covering rally. While broad based USD selling on dwindling Fed rate hike prospect until December, also keeps the AUD/USD pair underpinned. The USD index drops -0.22% to fresh 8-month lows at 92.79.

Next on tap for major remains the US ISM manufacturing PMI report due later in the US session. While tomorrow, China’s Caixin PMI and RBA’s policy decision will be solely watched in the Asian morning for fresh direction on the AUD/USD pair.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7668/72 (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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