FXStreet (Mumbai) – The Aussie extended gains, taking the AUD/USD pair higher for the fourth consecutive session. The pair currently trades around 0.7120; up 0.50% on the day.
Eyes confluence of 50-DMA & 200-DMA
The spot appears on track to test the 50-DMA and 200-DMA seen around 0.7145. The bid tone around the Aussie and other high yielding currencies gathered pace after the Bank of Japan announced negative rates and hinted at more interest rate cuts if required.
Meanwhile, the uptick in oil prices is helping Aussie and other commodity dollars move higher against the USD. Later in the day, the US preliminary Q4 GDP could influence the broad based demand for the US dollars.
AUD/USD Technical Levels
The immediate resistance is seen at 0.7145 (50-DMA & 200-DMA), above which the spot could target 0.72, which if taken out could send the pair higher to 0.7224 (Nov 4 high). On the other hand, a break below 0.7097 (Dec 12 low) would open doors for a slide to 0.7067 (daily low). A break lower would expose critical support at 0.7016 (Nov 10 low).
(Market News Provided by FXstreet)