- AUD/USD extends gains above 0.76 in the early NA session.
- Wall Street starts the day on a positive note.
- Copper futures start recovering its daily losses.
Although the AUD/USD pair started the day with a small bearish gap a little below the 0.76 handle, it was easily able to rise above that level as the risk-sensitive AUD took advantage of the improved market sentiment. At the beginning of the American session, the pair extended its gains to a fresh daily top at 0.7622 and was last seen trading a couple of pips below that recent high, adding 0.25% on the day.
With a lack of fundamental developments that could have a significant impact on the FX market’s action, the pair’s fluctuations on Monday don’t provide a directional clue. The US Dollar Index, which advanced to a daily high of 93.70 earlier in the session, turned negative near 93.40 in the last hour as investors refrain from taking large positions ahead of the critical FOMC meeting later this week.
On the other hand, copper futures provided an extra support to the commodity-sensitive AUD after erasing more than half of its daily losses. There won’t be any macroeconomic data releases from the United States on Monday. In the early Asian session on Tuesday, home loans and investment lending for homes data from Australia will be featured.
Technical outlook
The pair could encounter the first resistance at 0.7670 (100-DMA) ahead of 0.7715 (200-DMA) and 0.7800 (psychological level). On the downside, supports are located at 0.7575 (50-DMA/20-DMA), 0.7500 (psychological level) and 0.7450 (May 15 low).
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