AUD/USD: Bulls Rescued by Stabilizing Oil, Regains 0.7500

AUD/USD: Bulls Rescued by Stabilizing Oil, Regains 0.7500

4 May 2016, 08:37
Roberto Jacobs
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AUD/USD: Bulls Rescued by Stabilizing Oil, Regains 0.7500

The AUD/USD pair caught fresh bid-wave near 0.7470 region and swung back higher to 0.75 handle as a pause in the oil price sell-off underpins the sentiment.

AUD/USD eyes on 0.7550

Currently, the AUD/USD pair advances 0.35% to fresh session highs of 0.7508, heading towards 0.7550 – psychological levels. The bulls regained control and now re-attempt recovery from RBA-induced slump back on the 0.75 handle.

The Aussie found fresh support from a modest rebound in the oil prices after having plunged nearly 3% on rising US supplies data. However, further upside seems limited amid persistent USD strength across the board and risk-off sentiment seen around the global indices.

Calendar-wise, a fresh batch of US economic data will be released later today, with the US ADP jobs report the main highlight, while Thursday’s Aus retail sales and trade balance will be closely eyed for fresh direction on the AUD/USD pair.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7576 (5-DMA) above which gains could be extended to the next hurdle located at 0.7602/27 (1h 100-SMA/ 10-DMA). On the flip side, the immediate support located at 0.7468 (daily low). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7413/00 (Mar 16 Low/ round number).


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