FXStreet (Mumbai) – The Australian dollar continued to remain one of the best performers across the fx board in Asia, and was little affected by the renewed sell-off in oil and stocks.
AUD/USD supported at 0.7008
Currently, the AUD/USD pair trades 0.26% higher near fresh session highs of 0.7047, having found solid support ahead of 0.70 barrier. The Aussie seems to have picked up considerable strength since Tokyo open and now consolidates to the upside near 0.7050 region, as the poor sentiment towards higher-yielding assets such as oil, equities etc., keeps a lid on the upside.
The pair also remains boosted on the back of upbeat Aus fundamentals which reduces further RBA rate cut bets. Australia’s CPI rose 0.4% over the October-December period, easing from the 0.5% in the September quarter but higher than forecasts of 0.3%. While import prices Import prices dipped 0.3 percent on quarter versus expectations for a fall of 0.8% following the 1.4% increase previously.
Meanwhile, markets now await a host of US economic releases will be closely watched further cues on the US dollar, after the FOMC decision did little to help the buck.
AUD/USD Levels to watch
The pair heads higher and finds the immediate resistance at 0.7076 (Jan 8 High) above which gains could be extended to the next hurdle located at 0.7100 (round number). On the flip side, the immediate support located at 0.7006/03 (1h 100-SMA/ 5-DMA) Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6955/50 (1h 200-SMA/ psychological levels).
(Market News Provided by FXstreet)