AUD/USD rebounds sharply as risk sentiment recovers
|The AUD/USD pair caught fresh bid-wave and rebounded sharply higher over the last hour, as the demand for higher-yielding currencies returned amid a recovery in the recovery sentiment, while focus continues to remain on the US presidential debate.
AUD/USD regains 5-DMA and beyond
Currently, the AUD/USD pair trades 0.09% higher at 0.7645, hovering close to fresh session highs posted at 0.7651 last minutes. The Aussie found renewed bids just ahead of 0.76 handle and swung back on the bids amid a major turnaround in risk conditions, as the US presidential debate got underway.
Moreover, stronger Chinese industrial profits data also lifted the sentiment around the major. China’s industrial profits jumped 19.5% y/y in Aug versus +11% last. China is Australia’s top export destination.
Focus will continue to remain on the USD dynamic in wake of the ongoing US election debate, while markets await the US consumer confidence data and Fed speaks due later in the NA session for further impetus.
The pair finds the immediate resistance at 0.7691 (Sept 6 high) above which gains could be extended to the next hurdle located at 0.7700/08 (daily R3) and 0.7750 (psychological levels). On the flip side, the immediate support located at 0.7600 (50-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7578 (20-DMA) and below that to 0.7538 (100-DMA).
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