FXStreet (Mumbai) – The AUD/USD pair extends the recovery mode and trades firmer beyond 0.73 handle in the European session, on increased demand for riskier assets as risk-on moods return to markets.
AUD/USD testing highs
Currently, the AUD/USD pair trades 0.72% higher at fresh four-day highs of 0.7038, heading further towards hourly 200-MA now placed at 0.7057. The Aussie keeps pushing higher as markets unwind their shorts and lock-in gains ahead of the key China manufacturing PMI report, which is expected to have major impact on the Australian dollar. China is Australia’s top trading partner.
Moreover, risk-on rally witnessed in the European stocks and the Wall Street futures ahead of ADP report and Yellen’s speech, also benefits the higher yielding currencies such as the Aussie.
AUD/USD Levels to watch
The pair has an immediate resistance at 0.7057 (hourly 200-MA) levels, above which gains could be extended to 0.7096 (Sept 23 High) levels. On the flip side, support is seen at 0.6984 (Sept 23 Low) levels from here it to 0.6943 (Sept 10 Low).
(Market News Provided by FXstreet)