Home AUD/USD bulls looking to build on momentum back above 0.7400 handle
FXStreet News

AUD/USD bulls looking to build on momentum back above 0.7400 handle

   “¢   A follow-through USD retracement remains supportive of the ongoing recovery.
   “¢   Improving risk-appetite offsets resurgent US bond yields and remains supportive.

The AUD/USD pair extended overnight rebound from fresh YTD lows and is now looking to build on the momentum back above the 0.7400 handle.

Despite a goodish pickup in the US Treasury bond yields, the US Dollar corrected farther from 11-month peaks set yesterday and was seen as one of the key factors driving the pair higher for the second consecutive session.

This coupled with a slight improvement in investors’ risk appetite, as depicted by buoyant trading sentiment around global equity markets, was further seen boosting demand for perceived riskier currencies – like the Aussie.

Meanwhile, a consolidative price-action around copper prices failed to provide any additional lift to the commodity-linked Australian Dollar but did little to hinder the pair’s ongoing positive momentum.

With a relatively thin US economic docket, featuring the release of flash Markit manufacturing and services PMI, the USD price dynamics might continue to act as an exclusive driver of the price-action on the last trading day of the week.  

Technical levels to watch

A follow-through buying interest has the potential to continue lifting the pair further towards its next major hurdle near the 0.7445-50 supply zone, above which a fresh bout of short-covering is likely to assist the pair further towards reclaiming the key 0.7500 psychological mark.

On the flip side, the 0.7375-65 region now seems to act as an immediate strong support, which if broken might turn the pair vulnerable to break below multi-month lows support near the 0.7350-45 region and head towards testing the 0.7300 handle.

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.