AUD/USD looking for 0.76 after catching a much-needed break

• Aussie holding on the high side after climbing on Wednesday.
• Thursday sees the week’s first, and only, data dump for the AUD, though the figures are low-tier in nature.

The AUD/USD is trading into 0.7575 heading into the overnight session after a bullish Wednesday that saw the pair climb back over the 0.7500 major level.

markets were brought some relief after headlines from Italy suggested that the country may not need an election following the failure of the recently-elected coalition, averting fears that another election would act as a stand-in for a referendum on the Euro. Investor confidence surged and risk appetite returned to markets, sending the Aussie back up into recent highs after the pair sluggishly consolidated to the downside in recent days.

Thursday finally brings some measurable data for the AUD after a quiet start to the week, with ANZ’s ACtivity Outlook (prev. 17.8%) and Business Confidence (prev. -23.4), along with m/m Private Sector Credit for April (forecast 0.4%, prev. 0.5%), and Prive Capital Expenditure for the first quarter (forecast 0.7%< prev. -0.2%), all dropping at 01:30 GMT.

AUD/USD levels to watch

According to FXStreet’s own Valeria Bednarik, “the pair heads into the Asian opening above the 38.2% retracement of its latest weekly slide, also above all of its moving averages that anyway continue lacking directional strength, while technical indicators entered positive territory, with the Momentum still in neutral territory but the RSI at 61. The key to the upside is 0.7620, the 50% retracement of the latest weekly decline, as above it, the risk will clearly lean to the upside.”

Support levels: 0.7565 0.7505 0.7470  

Resistance levels: 0.7620 0.7660 0.7700