AUD/USD Current price: 0.7598
- The positive tone of equities and commodities underpinned the pair.
- AUD/USD could extend its advance up to 0.7660, the 61.8% retracement of its latest decline.
Broad risk appetite maintained the Aussie on the winning side during the Asian session, as tensions between China and the US ebbed. The AUD/USD pair traded as high as 0.7604 so far today, holding nearby mid-European morning as the greenback continues giving up ground. There were no macroeconomic releases in Australia that could affect the currency, but the strong pace of equities and commodities was enough to back the AUD. The US has just a minor figure to offer, which means that sentiment will continue leading the way. The country will release its Richmond Fed Manufacturing Index for May, forecasted at 9 from a previous -3. In the meantime, European indexes struggle to remain in the green after a strong opening, while US government bond yields remain steady around Friday's closing levels.
The 4 hours chart for the pair shows that the recovery stalled a few pips below the 50% retracement of the latest weekly slump at 0.7620, also capped by the 200 SMA a handful of pips below it, making of the area a strong resistance that if it gets broken, should result in an extension up to 0.7660, the 61.8% retracement of the mentioned decline. In the mentioned chart, technical indicators remain near overbought levels, with the RSI advancing above its previous weekly high, while the 20 SMA gains bullish traction well below the current level, supporting the bullish case for the pair.
Support levels: 0.7570 0.7530 0.7505
Resistance levels: 0.7620 0.7660 0.7700
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