AUD/USD Back on the Bids, Tracks Gold Higher

AUD/USD Back on the Bids, Tracks Gold Higher

3 June 2016, 06:17
Roberto Jacobs
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AUD/USD Back on the Bids, Tracks Gold Higher

The AUD/USD pair found renewed bids near 0.7225 region and reverted towards daily highs, moving in tandem with the minor rebound seen in the gold prices.

AUD/USD back to 20-DMA

Currently, the AUD/USD pair trades +0.10% higher at 0.7239, testing session highs reached at 0.7238 earlier on the day. The Aussie bounced-off a brief dip to 5-DMA (0.7227) induced by poor China services PMI data and now returns to daily highs, largely tracking  the upswing in the gold prices, while higher Australian stocks also underpin the sentiment around the AUD. Caixin Chain Services PMI for May came in at 51.2 versus 51.8 last and 52.0 expectations.

However, the upside appears to lack follow through as the demand for the greenback is likely to return in full swing ahead of the eagerly anticipated US labour market report, which will provide next direction on the major.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7299/0.7300 (June 1 high/ round number) above which gains could be extended to the next hurdle located at 0.7350 (psychological levels). On the flip side, the immediate support located at 0.7211/00 (10-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7175/65 (May 31 Low/ Daily S2).


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