AUD/USD: Buyers in Control, 200-DMA a Whisker Away
Having found solid support near 0.7220 region in early trades, the AUD/USD pair extends its recovery phase from multi-week troughs and now looks to regain 200-DMA amid broad based US dollar weakness.
AUD/USD trades above 5-DMA
Currently, the AUD/USD pair trades +0.40% at fresh session highs of 0.7254, having surpassed Friday’s high. The Aussie caught a fresh bid wave in the Asian morning and now moves further away from eleven-week lows, as markets to take profits off the table after the recent weakness ahead of the RBA Governor Stevens speech and the key Aus private capex data lined up for release later this week.
Moreover, a broadly lower US dollar also aids the recovery in the Aussie, with the DXY now dropping -0.18% to 95.12 levels. However, the upside seems limited amid lower oil prices and mixed trading seen on the Asian indices.
In the day ahead, amid a lack of relevant fundamental drivers for the major, the sentiment around the oil and stock markets will play a key role.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7261/64 (200 & 20-DMA) above which gains could be extended to the next hurdle located at 0.7290/0.7300 (1h 200-SMA/ round number). On the flip side, the immediate support located at 0.7162/50 (Mar 2 Low/ psychological levels). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7105 (April 29 & Mar 1 Low).