AUD/USD building on Tuesday's rebound from 0.7620 support area
|The AUD/USD pair gained some fresh traction on Wednesday and was seen building on to yesterday's rebound from the 0.7620-15 support area.
The pair on Tuesday witnessed a sharp reversal from 0.7700 neighborhood in wake of better-than-expected US PPI print and hawkish testimony from the Fed Chair Janet Yellen. The major subsequently dropped to test the lower bound of near-term trading range before bouncing off lows and end the day in positive territory.
On Wednesday, the pair extended yesterday’s recovery move and is currently trading around 0.7675-80 band. The up-move, however, lacked momentum amid subdued price-action around commodity space, especially copper, and rising US Treasury bond yields, which tend to dent demand for higher-yielding currencies – like the Aussie.
Market participants on Wednesday will remain focused on the US macro releases that includes – CPI print and monthly retail sales data, which would be looked upon to reinforce hawkish outlook and reaffirm market expectations of faster pace of Fed rate-hike expectations in 2017 and provide fresh impetus for the pair’s next leg of directional move.
Technical levels to watch
Immediate upside resistance remains near 0.7695-0.7700 region above which the pair is likely to extend the upward trajectory towards Nov. 2016 daily closing highs resistance near 0.7745-50 region. On the flip side, weakness below session low support near 0.7655 level, leading to a subsequent drop below 0.7640 level, might continue to find strong support near 0.7610-05 region, which if broken could accelerate the slide towards 0.7555-50 horizontal support, en-route 0.7535-30 region.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.