“¢ Aussie remains supported by today’s upbeat domestic data.
“¢ USD weighed down by reviving trade fears and remains supportive.
“¢ Technical buying above 50-DMA adds strength to the bullish move.
The AUD/USD pair continued scaling higher through the mid-European session and is currently placed at fresh 6-week tops, just above mid-0.7500s.
The Australian Dollar remains underpinned by today’s upbeat domestic data that raised prospects for a relatively stronger quarterly growth in Q1 and helped shrug off concerns over escalating trade tensions.
Also contributing to the strong up-move on the first trading day of a new week was a sharp US Dollar retracement slide, which failed to capitalize on Friday’s upbeat jobs report-led up-move and has largely negated a goodish pickup in the US Treasury bond yields.
Moreover, a positive trading sentiment around commodity space, especially copper, provided an additional boost to the commodity-linked Australian Dollar and remained supportive of the strong bid tone surrounding the major.
Traders rushed to cover their bearish positions after the key 50-day SMA barrier, near the 0.7600-0.7610 region, was decisively taken out, with a combination of short-covering/fresh long build up further fueling the ongoing strong bullish momentum.
In absence of any major market moving economic releases from the US, the pair now seems to aim towards clearing its next major hurdle at 100-day SMA near the 0.7670 region.
Technical levels to watch
Any subsequent up-move beyond the above-mentioned resistance, the pair is likely to head towards reclaiming the 0.7700 handle before darting towards the 0.7735-40 supply zone.
On the flip side, any meaningful retracement back below 0.7630-25 area now seems to find support near the 0.7600 handle, which if broken could accelerate the slide towards 0.7575-70 horizontal support.
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