AUD/USD clings to small gains above 0.7050 despite USD strength
|- Commodity rally lifts AUD on Wednesday.
- US Dollar Index advances above 97.
- 10-year US T-bond yield up 1.8%.
Despite a broad-based USD strength on Wednesday, the AUD/USD pair advanced to a daily high of 0.7070 and was last seen trading at 0.7055, where it was up 0.25% on a daily basis.
Led by a more-than-9% gain witnessed in crude oil prices, commodity-sensitive currencies such as the AUD gathered strength today. Furthermore, the improved market sentiment as reflected by a decisive rally seen in Wall Street provided an additional boost to the currency.
However, the pair's gains got limited as the greenback returned from the Christmas holiday on a strong note. Fueled by the 10-year Treasury bond yield's 1.8% upsurge in the session, the US Dollar Index, which tracks the greenback's value against a basket of six major currencies, recovered above the 97 mark. At the moment, the DXY is up 0.55% on the day at 97.11.
The only data release from Australia in the remainder of the week will be the private sector credit change, which is scheduled to be published on Friday. Tomorrow, weekly jobless claims, consumer confidence, and new home sales will be featured from the U.S.
Technical levels to consider
The pair could face the first support at 0.7030 (Dec. 21 low) ahead of the critical 0.7000 (psychological level). On the upside, resistances align at 0.7070 (daily high), 0.7120 (Dec. 21 high) and 0.7180 (100-DMA).
AUD/USD Forecast 2019: Collateral damage from the US-China trade war.
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.