FXStreet (Mumbai) – The upbeat momentum in the AUD/USD pair found fresh legs near 0.6960 region and the prices rallied once again to reach new session highs just shy of 0.70 barrier.
AUD/USD outperforms commodities-currencies pack
Currently, the AUD/USD pair trades 0.61% higher at fresh session highs of 0.6996, bouncing-off strong support of 0.6960. A renewed risk-on wave returned to markets with the rallying European stocks, lifting the bids for higher yielding currencies such as the AUD. Germany’s DAX jumps +1.12%, the UK’s FTSE bounces +0.45% while the pan-European benchmark, the Euro Stoxx 50 rallies +1.19%.
Moreover, markets resorted to profit taking on their AUD shorts after the pair rebounded from fresh five-month lows reached ahead of 0.69 handle, and thus, drives AUD/USD higher. Meanwhile, the upbeat sentiment on the European stocks appears to dominate the moves in the Aussie, which completely offsets the heavy losses seen in the oil and copper prices.
AUD/USD Levels to watch
The pair heads higher and finds the immediate resistance at 0.7057 (1h 100-SMA) above which gains could be extended to the next hurdle located at 0.7117 (10-DMA). On the flip side, the immediate support located at 0.6928 (Daily low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6893 (Sept 2015 Low).
(Market News Provided by FXstreet)