- Aussie remains vulnerable but still above 2018 lows.
- AUD/USD supported by improvement in market sentiment, limited by US dollar strength.
The AUD/USD pair rose after the begging of the US session to 0.7098, hitting a fresh daily high and pulled back finding support at 0.7075 (20-hour moving average). As of writing was moving toward the highs but still holding in a range. The improvement in market sentiment helped the Aussie.
In Wall Street, the Dow Jones was up 1.49% and the Nasdaq 2.60%, both indexes recovering most of yesterday’s losses. The better mood around markets boosted emerging market currencies. The Aussie benefited but in a limited way. The greenback remained strong against its most-traded rivals. Versus the euro hit at multi-month highs while the US Dollar Index reached 96.63, the highest level since mid-August.
On a wider perspective, AUD/USD continues to move in a range between 0.7105 and 0.7050, still under pressure and close to 2-year lows.
AUD/USD Short-term Technical levels
To the downside, the immediate support is seen at 0.7075 (US session low), followed by the strong 0.7055 (Oct 23, 24, 25 low) and below 0.7040 (2018 low) and 0.7010. On the flip side, resistance could be located at 0.7095/0.7100 (daily high/psychological) and 0.7120.
Share
