The AUD/USD pair remains strongly bids and reaches the strongest levels in eight month this Monday, in response to the ongoing rally in the copper prices.
AUD/USD sees a 30-pips rally
Currently, the AUD/USD pair rallies 0.37% to fresh eight-month highs at 0.7592, and remains on track to conquer 0.7600. The risk-on rally in the Asian equities combined with stronger copper and iron-ore prices lift the sentiment around the resource-linked Aussie, pushing it towards multi-month peaks. The copper futures on Comex rally 1.30%, while the iron-ore prices on Dalian Commodity Exchange (DCE) settled the week higher on Friday, up nearly 33% so far this year.
More so, the US dollar remains broadly lower in wake of Wednesday’s FOMC decision, with markets expecting Fed to stay put this week amid the recent slew of not so impressive US macro data and on USD strength. Next on tap for the major remains the RBA minutes and the US retail sales and PPI data due tomorrow, in absence of no economic update for the US docket today.
AUD/USD Levels to watch
The pair finds the immediate resistance at 0.7600 (psychological levels) above which gains could be extended to the next hurdle located at 0.7650 (July 2015 levels). On the flip side, the immediate support located at 0.7542/31 (daily low/ 5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7480/76 (1h 100-SMA/ 10-DMA).
(Market News Provided by FXstreet)