AUD/USD Jumps Towards 200-DMA On Upbeat Aus Data Dump

AUD/USD Jumps Towards 200-DMA On Upbeat Aus Data Dump

31 May 2016, 04:31
Roberto Jacobs

AUD/USD Jumps Towards 200-DMA On Upbeat Aus Data Dump

The Australian dollar caught a strong bid-wave following the release of a set of auspicious Australian macro data, which sent AUD/USD almost 40-pips higher beyond 0.72 handle.

AUD/USD targets 200-DMA at 0.7263

Currently, the AUD/USD pair jumps +0.52% to 0.7220, hovering close to session highs printed at 0.7225 few minutes ago. The bulls tightened their grip on the Aussie as a surprisingly positive Aus building consents data combined with upbeat current account and private sector credit data provided the much-needed impetus to the local currency, helping the major extend its recovery mode from near multi-month troughs.

The Australian net exports data for Q1 bettered expectations, which added to the expectations of a stronger GDP print lined up for release tomorrow and hence, collaborated to a renewed buying interest seen in the AUD/USD pair.  Net exports for Q1 will contribute 1.1% to Aus GDP versus expectations of 0.7%.

Moreover, the overnight recovery in the gold prices coupled with a correction in the US dollar across the board, also kept the sentiment around the Aussie buoyed. Looking ahead, the major now awaits the US dataflow ahead of the crucial Aus GDP report and Chinese manufacturing PMI readings due tomorrow.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7263 (200-DMA) above which gains could be extended to the next hurdle located at 0.7300 (round number). On the flip side, the immediate support located at 0.7202/0.7194 (10 & 5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7179/65 (Daily pivot/ May 26 Low).


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