AUD/USD Fades a Spike to 0.7190, Despite Risk-on

AUD/USD Fades a Spike to 0.7190, Despite Risk-on

11 May 2016, 05:16
Roberto Jacobs
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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).


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