AUD/USD Attempting to Build On to its Move above 0.7200 Handle
The AUD/USD pair is attempting to build on to its Thursday's minor rebound back above 0.7200 handle to currently trade with marginal gains at 0.7230, still within Thursday's range.
The pair this week witnessed a range-bound trade, oscillating within 50-pips range around 0.7200 handle. After witnessing heavy falls for four consecutive weeks, the pair seems to show some signs of stability amid risk-on rally and a minor corrective slide in the US Dollar. However, it would be prudent to wait for a break-out of the pair's recent trading range before jumping on to conclude the pair's near-term direction.
Moving ahead, market players now await for the release of prelim US GDP print for the first quarter of 2016, which if delivers a positive surprise would further add fuel to speculations of a June Fed rate-hike and boost demand for the greenback, eventually forcing the AUD/USD pair to resume its near-term downward trajectory.
Technical levels to watch
From current level, 200-day SMA near 0.725-60 region remains immediate strong hurdle to clear, which if conquered should pave way for further recovery towards 0.7315-25 resistance area.
On the flip side, a weekly low near 0.7150-45 seems to protect immediate downside. Sustained break below this immediate support seems to accelerate the fall immediately towards 0.7100 round figure mark, which could further get extended towards 0.7085 horizontal support.