• Catches fresh bids for the fourth consecutive session, despite resurgent USD demand.
• The uptick seemed unaffected by a weaker tone around commodity space.
• Investors now eye the latest FOMC monetary policy update for fresh impetus.
The AUD/USD pair stalled overnight pull-back from six-week tops and found decent support near 100-day SMA, with bulls making a fresh attempt to conquer the 0.7300 handle.
As investors digested the results of the US midterm elections, a late US Dollar recovery from 2-1/2 week lows kept a lid on any runaway rally for the major. The profit-taking slide, however, turned out to be rather short-lived and the pair regained positive traction for the fourth consecutive session on Thursday.
The up-move seemed rather unaffected by a follow-through USD uptick on Thursday, supported by a goodish pickup in the US Treasury bond yields. Even a negative tone around commodity space, especially copper, also did little to prompt any fresh selling, albeit might now contribute towards capping gains.
Moving ahead, market participants now shift their focus to the latest FOMC monetary policy update, due to be announced later during the US trading session. The Fed is widely expected to maintain status-quo but indicate to raise interest rates further for the fourth time this year in December.
Hence, it would be prudent to wait for a sustained move beyond the 0.7300 handle to confirm a near-term bullish breakout above 100-day SMA and before traders start positioning for any further near-term appreciating move.
Technical levels to watch
Momentum above the 0.7300 handle, leading to a subsequent strength beyond September monthly high level of 0.7315 will reinforce the bullish bias and continue lifting the pair further towards the 0.7350 supply zone. On the flip side, the 0.7265 region (100-day SMA) might continue to act as an immediate support, which if broken might prompt some aggressive long-unwinding trade and drag the pair back towards the 0.7200 handle.