AUD/USD Attempts a Bounce Amid Improved Risk Sentiment

AUD/USD Attempts a Bounce Amid Improved Risk Sentiment

9 May 2016, 11:57
Roberto Jacobs
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AUD/USD Attempts a Bounce Amid Improved Risk Sentiment

The Australian dollar trims losses against its American counterpart in the European session, lifting AUD/USD from multi-week troughs amid renewed optimism spread across the markets.

AUD/USD regains 100-DMA at 0.7347

Currently, the AUD/USD pair trades -0.17% lower at 0.7355, rebounding from nine-week lows struck at 0.7335. The bears appear to tighten their grip on the AUD, allowing a minor-bounce in the Aussie pair amid improved sentiment towards higher-yielding currencies triggered by the risk-on rally in the European equities and rallying oil prices.

Moreover, AUD/USD remains on the back foot as markets turn cautious ahead of the Chinese CPI and PPI report due tomorrow. While the US retail sales data due out on Friday will remain the next risk event for the major amid a data-light macro calendar for this week.

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 0.7537 (1h 200-SMA/ psychological levels). On the flip side, the immediate support located at 0.7347 (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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