FXStreet (Mumbai) – The AUD/USD pair halted its overnight descent right at the hourly 200-SMA support located at 0.6934 and now attempts a minor recovery in a bid to regain 0.70 handle.
AUD/USD hits fresh daily highs
Currently, the AUD/USD pair trades 0.14% higher near fresh session highs of 0.6968, recovering nearly 40 pips from session lows struck at 0.6934 at Tokyo open. Since the start of 2016, the AUD/USD pair is closely mirroring the moves in the oil prices and is no different this Tuesday, with the Aussie now making minor recovery attempts in tandem with oil. The US oil is seen retracing losses and inches closer to $ 30 barrier, while the Brent oil trades almost flat and nears $ 31.
Looking ahead, light trading continue to prevail this session as the Australian traders are away on a public holiday and hence, attention now turns towards tomorrow’s crucial Aus CPI report and the Fed decision for fresh direction on the pair. Meanwhile, oil market sentiment will continue to lead the financial markets.
AUD/USD Levels to watch
The pair heads higher and finds the immediate resistance at 0.6995/ 0.7002 (1h 50-SMA/ daily R21 above which gains could be extended to the next hurdle located at 0.7050 (Jan 13 High/ psychological levels). On the flip side, the immediate support located at 0.6934 (Daily Low/ 1h 200-SMA) Selling pressure is likely to intensify below the last, dragging the Aussie to 0.6907/00 (Jan 7 Low/ round number).
(Market News Provided by FXstreet)