AUD/USD analysis: Aussie regains its poise with equities

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7551

Aussie led by sentiment, taking clues form equities.
AUD/USD right below the key 0.7565 Fibonacci resistance.

The Australian dollar eased on the back of falling equities, retreating from the 0.7600 region to 0.7522 during the European morning, undermined by the dominating risk-negative sentiment. Wall Street's bounce from daily lows didn't help the Aussie to recover, with the pair holding a handful of pips above the mentioned low. The positive tone of FOMC's Minutes didn't affect equities which slowly extended their recoveries after the Fed suggested that they are willing to let inflation run a bit higher, helping AUD/USD to recover some further ground. There are no macroeconomic news scheduled in Australia for this Thursday, which means equities will set the tone for the upcoming Asian session. The pair is currently below the 0.7565 Fibonacci resistance, but the risk leans to the upside, as, in the 4 hours chart, the pair held above its 100 SMA and is currently battling to overcome a bullish 20 SMA, while technical indicators stand within positive territory, the RSI actually advancing at around 53. Further recoveries above the mentioned Fibonacci resistance should see the pair extending its recovery up to the 0.7620 region, the 50% retracement of its latest weekly decline.

Support levels: 0.7520 0.7470 0.7435

Resistance levels: 0.7665 0.7590 0.7620

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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