FXStreet (Mumbai) – The AUD/USD’s solid recovery from 100-DMA continues to gain further momentum and now breaches the key 200-SMA resistance on hourly sticks, pointing towards a test of 0.73 handle.
AUD/USD extends gains on minor-recovery in commodities
Currently, the AUD/USD pair trades 0.30% higher at fresh session highs of 0.7270, finally piercing through the hourly 200-SMA at 0.7266. The Aussie extends its 1 big figure-rally into a second day today on the back of a renewed bout of selling seen in the US dollar over last hours while the minor-recovery witnessed in commodities’ prices also boosts the resource-linked AUD further. Gold futures on the Comex are trading marginally higher at 1064 levels, the US Oil gains 0.20% to $ 36.40/ barrel while copper prices are modestly flat around 2.11 levels.
Adding to further gains in the Aussie, the latest RBA minutes read upbeat on the overall Australian economic outlook, despite the recent decline in commodities’ prices. Also, firmer Australian stocks contributed to the renewed buying interest seen around the AUD/USD pair.
Meanwhile, markets now await the US inflation report due later today and the Aus Mid-Year Economic and Fiscal Outlook to be published tomorrow for further cues. While the FOMC announcement due tomorrow will hog the limelight.
AUD/USD Levels to watch
The pair nears 0.73 handle with the immediate resistance located at 0.7296 (daily R1) above which gains could be extended to the next hurdle located at 0.7336 (Dec 10 High). On the flip side, the immediate support is seen at 0.7237 (Daily Low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7190 (50-DMA).
——-
What will 2016 bring to the Forex traders? Attend our Forex Forecast 2016 – The Panel with Ashraf Laidi, Valeria Bednarik, Boris Schlossberg, Adam Button, Ivan Delgado and Dale Pinkert. Register for the live event on Dec. 18th and get the recording too.
——-
(Market News Provided by FXstreet)