AUD/USD: Mildly bid on uptick in JPY cross and risk-on in equities

• AUD/USD is posting moderate gains above 0.72 in Asia, despite the pro-USD environment in the market.
• The uptick in the AUD/JPY cross has put a bid under the AUD/USD pair.

Currently, the AUD/USD is trading at 0.7215, having clocked a low of 0.722 earlier today.

The minor uptick seems to be solely led by some cross-driven strength, stemming out of a rise in the AUD/JPY pair. The cross is being pushed higher mainly due to JPY selling.

Further, major Asian stock indices are trading in the green today, offering support to risk currencies like the AUD. For instance, Japan’s Nikkei is reporting a 1.8 percent gain and is currently trading at the highest level since 1991. The Shanghai Composite index is up almost 1 percent and the stocks in Australia and New Zealand are up 0.40 percent.

Looking ahead, the pair may extend gains if the risk-on action seen in the Asian stocks hits the European session. However, Italy’s debt concerns might play spoilsport, hence the AUD bulls need to observe caution.

AUD/USD Technical Levels

Resistance: 0.7241 (10-day moving average), 0.7287 (50-day moving average), 0.73 (psychological level)

Support: 0.7220 (Asian session low), 0.7142 (Sept. 17 low), 0.7085 (Sept. 11 low)