AUD/USD Defending Gains Amid Industrial Metals Sell-off

AUD/USD Defending Gains Amid Industrial Metals Sell-off

9 May 2016, 05:32
Roberto Jacobs

AUD/USD Defending Gains Amid Industrial Metals Sell-off

The bid tone around the AUD is seen weakening over the last hour, driving AUD/USD slightly lower towards 100-DMA on aggressive selling around the industrial metals.

AUD/USD fails near 0.7390

Currently, the AUD/USD pair trades +0.10% higher at 0.7368, having previously posted daily highs at 0.7386. The recovery attempts in the AUD/USD pair from two-month troughs remains confined below 0.74 handle, as heavy selling in the iron-ore and copper prices overshadow the optimism spurred by rising oil prices. Iron-ore prices are down almost 4%, while copper sinks -1.40%.

Moreover, extension of the ongoing bullish momentum around the greenback, further keeps a lid on the AUD/USD pair. Meanwhile, markets failed to react to the downbeat Aus jobs ads data as focus now turns towards the Chinese CPI data due later this week, while the US calendar remains fairly light.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7400 (round number) above which gains could be extended to the next hurdle located at 0.7550 (1h 200-SMA/ psychological levels). On the flip side, the immediate support located at 0.7348 (100-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7300/0.7278 (round figure/ Mar 3 Low).


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