AUD/USD Regains 0.7300, Session Highs

AUD/USD Regains 0.7300, Session Highs

16 May 2016, 12:04
Roberto Jacobs

AUD/USD Regains 0.7300, Session Highs

The Aussie dollar is now picking up further pace, lifting AUD/USD to the area above the 0.7300 handle, or daily highs.

AUD/USD up on USD-selling

After bottoming out in the mid-0.7200s in early trade, the pair has now regained the key barrier at 0.7300 the figure following a steady stance around the greenback and a recovery of crude oil prices, all propping up the upbeat tone in the risk-associated space.

AUD has quickly left behind the initial weakness in response to softer-than-expected results in the Chinese economy released over the weekend and a consequent pick up in the risk aversion early today.

Looking to Tuesday’s calendar in Oz, the RBA minutes are due, followed by the speech by RBA’s Debelle and Q1 Wage Price Index (Wednesday) and key labour market figures on Thursday.

AUD/USD levels to watch

At the moment the pair is up 0.26% at 0.7292 and a breakout of 0.7341 (100-day sma) would expose 0.7449 (38.2% Fibo of 0.6828-0.7836) and finally 0.7509 (20-day sma). On the other hand, the next support aligns at 0.7249 (low May 16) ahead of 0.7210 (61.8% Fibo of 0.6828-0.7836) and then 0.7105 (low Feb.29).


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