AUD/USD Fades a Spike to 0.7190, Despite Risk-on
The AUD/USD pair took-out Tuesday’s high, although failed to sustain at higher levels and drifted lower over the last hour.
AUD/USD back below hourly 100-SMA at 0.7387
Currently,
the AUD/USD pair rises 0.12% to 0.7372, now heading towards session
lows struck at 0.7362 in opening trades. The Aussie is seen trimming
gains, with markets taking profit off the table after the rate reversed
from just below 0.74 barrier.
However, the prices remain
underpinned on the back of upbeat second-tier economic news from
Australia, with both the consumer sentiment and home loans data
bettering expectations. While risk-on rally in the Asian equities
combined with higher oil prices also keep the downside cushioned in the
AUD/USD pair.
On data front, we have little of note for the major
in the day ahead, except for the crude oil inventory data, and hence,
the risk-on/off sentiment persisting in the markets will dominate the
moves across the fx board.
AUD/USD Levels to watch
The
pair finds the immediate resistance at 0.7387/90 (1h 100-SMA/ daily
high) above which gains could be extended to the next hurdle located at
0.7450 (round number/ 10-DMA). On the flip side, the immediate support
located at 0.7264 (200-DMA). Selling pressure is likely to intensify
below the last, dragging the Aussie 0.7200 (round figure).
