AUD/USD retakes the 0.7100 handle, fresh daily highs

• The Aussie Dollar picks up extra pace and clinches 0.7100.
• AU labour market report next of relevance on Thursday.
• FOMC event will drive the sentiment later in the day.

The buying interest around the Aussie Dollar remains firm today and is now pushing AUD/USD to levels above the critical 0.7100 mark, recording at the same time fresh daily highs.

AUD/USD now looks to FOMC, data

Following lows in the 0.7060 area during the Asian trading hours, the pair has managed to regain composure and stage quite a strong rebound to the current 0.7100 neighbourhood, almost fully reverting yesterday’s pullback.

AUD bounced off session lows after the RBA minutes left no room for surprises today, showing the central bank still expects the economy to expand 3% during this year.

Moving forward, the FOMC meeting will drive the sentiment around the buck in the very near term, although traders are also looking to the always-key labour market report in Australia due early on Thursday.

What to look for around AUD

The broad risk-appetite trends continue to drive the sentiment in the high-beta currencies and the commodity-bloc, with developments from the US-China trade dispute still playing the main role when comes to determine the price action. Today’s RBA minutes showed no change in the bank’s neutral stance, at the time when market participants continue to price in a rate cut at some point in H2 2019 and the medium term bearish outlook on AUD remains unchanged.

AUD/USD levels to watch

At the moment the pair is gaining 0.17% at 0.7099 and a breakout of 0.7119 (high Mar.18) would aim for 0.7130 (55-day SMA) and finally 0.7160 (100-day SMA). On the downside, immediate contention emerges at 0.7056 (low Mar.20) seconded by 0.7003 (low Mar.8) and then 0.6907 (monthly low Sep.4 2015).