AUD/USD Keeps the Red, Flirts with 100-DMA
The Australian dollar keeps losses and languishes near lows versus its American counterpart in mid-Asia, with AUD/USD almost losing sight of 0.74 handle.
AUD/USD rejected ahead of hourly 100-SMA at 0.7383
Currently,
the AUD/USD pair drops -0.20% to 0.7348, testing daily lows struck at
0.7345, where 100-DMA intersects. The Aussie resumed the broader
downtrend after having witnessed a temporary relief rally the day
earlier, as the persisting risk sentiment came under pressure after the
oil prices fell back in the red, weighing down on the higher-yielding
assets such as equities, the AUD and so on.
However, the downside
remains cushioned around the mid-point of 0.73 handle as upbeat
domestic data from the OZ economy continue to underpin. Earlier today,
the Australian consumer sentiment data came in way stronger than the
previous reading, indicating that the Aus consumers’ sentiment got a
huge boost from the RBA rate cut decision last month.
The
Westpac-Melbourne Institute Consumer Sentiment index jumped 8.5% in May
to a January-2014 high of 103.2, after sliding to a seven-month low of
95.1 in April. While, Australia March Home loans came in at -0.2% m/m
versus -1.5% last.
Looking ahead, amid a quiet economic calendar
this week, focus now remains on the broader market sentiment and US
retail sales data due out on Friday.
AUD/USD Levels to watch
The
pair finds the immediate resistance at 0.7383/90 (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 0.7300 (round figure). Selling pressure is likely to
intensify below the last, dragging the Aussie 0.7264 (200-DMA).
