The broad based USD weakness is boding well for the commodity dollars – AUD, NZD and CAD. The AUD/USD pair just clocked a high of 0.7205 levels and is a top performer among the commodity dollars pack.
Will oil play a spoil sport?
What remains to be seen is if the commodity dollars decouple from the broad based USD weakness and drop if oil begins its slide once again. Moreover, the losses in oil also results in a drop in prices of other commodities-base metals. Hence, Aussie stands exposed to the slide in oil.
As of now, the currency pair is hovering around 0.72 handle. Later in the day, the focus would be on oil and US weekly jobless claims data.
AUD/USD Technical Levels
The immediate resistance is seen at 0.7224 (Nov 4 high), which if taken out shall open doors for a rally to 0.7269 (weekly 10-MA). On the other hand, a break below 0.72 would open doors for a slide to the support of the weekly 5-MA stationed at 0.7147.
(Market News Provided by FXstreet)