AUD/USD breaks above 0.7100, hits 3-week highs

FXStreet (Córdoba) - AUD/USD shot higher and rose above the 61.8% Fibo retracement of its 2016 fall toward fresh 3-week highs, underpinned by a weaker US dollar and wave of optimism across financial markets.

The dollar weakened following a quite disappointing US durable goods orders report. Meanwhile, oil prices surged and stocks advanced amid confusing reports of a possible oil output cut agreement that may involve all producers, but the euphoria was short-lived.

Against this backdrop, AUD/USD climbed to its highest level since Jan 6 at 0.7128. At time of writing, the pair is trading at 0.7110, recording a 1.21% daily gain.

AUD/USD technical levels

In terms of technical levels, immediate resistances are seen at 0.7143/45 (100- & 50-day SMA) and 0.7170 (Jan 6 high). On the other hand, supports could be found at 0.7011/07 (20-day SMA/Jan 28 low), 0.6964 (10-day SMA) and 0.6918 (Jan 26 low).