AUD/USD Takes-Out 0.7500, Solid Aus Data Underpins

AUD/USD Takes-Out 0.7500, Solid Aus Data Underpins

5 May 2016, 08:13
Roberto Jacobs

AUD/USD Takes-Out 0.7500, Solid Aus Data Underpins

The bid tone around the AUD keeps growing bigger as we head into early European trades, driving the AUD/USD relief rally above 0.75 handle.

AUD/USD eyes Wednesday’s high

Currently, the AUD/USD pair rises 0.64% to 0.7504, flirting with daily highs reached at 0.7509 last minutes. The bulls continue to cheer a slew of stronger-than expected Australian economic data as the European session gets underway, although thin trades are expected as most major European markets are closed on account of a public holiday.

Earlier on the day, Australia's March retail sales came in at 0.4% m/m vs 0.3% expected and 0% last, while the trade balance printed -2,163M vs -2,900M expected and -3,410M last. While the newly-built home sales surged 8.9% m/m in March, rising at the fastest pace in six years.

Moreover, a solid recovery in the oil prices also supports the upbeat momentum in the resource-linked Aussie. Looking ahead, the US jobs data and Fed speak will be closely eyed ahead of the crucial US NFP report due tomorrow.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7547/50 (5-DMA/ round number) above which gains could be extended to the next hurdle located at 0.7601/17 (10-DMA/ 1h 200-SMA). On the flip side, the immediate support located at 0.7447 (multi-week 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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