AUD/USD Recovery Stalls ahead of 0.7300, US Data Eyed

AUD/USD Recovery Stalls ahead of 0.7300, US Data Eyed

13 May 2016, 08:08
Roberto Jacobs
0
9

AUD/USD Recovery Stalls ahead of 0.7300, US Data Eyed

The AUD/USD pair is seen struggling to extend its recovery from ten-week lows over the past few hours, keeping the pair in a flat-lining around 0.73 handle.

AUD/USD finds support well above 200-DMA at 0.7264

Currently, the AUD/USD pair drops -0.27% to 0.7300, reversing a brief dip to fresh ten-week lows reached at 0.7287 post-China open. The Aussie keeps the softer tone intact for the second straight session and remains poised to book third straight weekly drop, as the recent sell-off in the major was triggered by poor Aus inflation data and broad based US dollar rally.

While today’s drop in the AUD/USD pair can be largely attributed to the intensifying risk-off moods in the markets as oil prices retreat from 2016 tops. Moreover, markets prefer to hold the US currency heading into a string of US economic data due later in the NA session.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7350 (100-DMA) above which gains could be extended to the next hurdle located at 0.7373 (daily high). 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 0.7230/00 (daily S3/ Feb-end levels).


fxs_logo_news.png

Share it with friends: