FXStreet (Mumbai) – The improving risk-on sentiment across the financial markets coupled with broad based US dollar weakness drove the Aussie to the highest levels seen in the last two months.
AUD/USD rises to 100-DMA
Currently, the AUD/USD pair trades 0.74% higher at fresh two-month peaks of 0.7319, finally breaking through the 100-DMA strong resistance. The Aussie bounced-off the key support of H1 S3 near 0.7250 levels and extended the rally thereon, with the bulls successful in conquering the 0.73 handle.
Broad based risk-on rally in the commodity-currencies triggered by leaping oil, copper and gold prices, continues to bolster the AUD bulls. US oil is up 1.68%, gold gains 0.70% while the copper soars +3.61%.
Moreover, the massive sell-off in the US dollar against its major competitors, in response to the negative Fed minutes also supports the upsurge in the AUD/USD pair. Markets are likely to continue tracking the sentiment on the equities for further momentum.
AUD/USD Levels to watch
The pair has an immediate resistance at 0.7349 (H1 R3) levels, above which gains could be extended to 0.7400 (round number) levels. On the flip side, support is seen at 0.7252 (H1 S3) levels from here it to 0.7216 (Aug 12 Low).
(Market News Provided by FXstreet)