The Aussie stalled its sharp recovery from post-Yellen lows near the upper bound of 0.76 handle, and now consolidates in a narrow range, having found fresh bids at 10-DMA (0.7655) last hour.
AUD/USD is seen fluctuating between gains and losses over the last hours, now finally managing to regain the bids amid risk-on rally seen in the Asian equities, which underpins the sentiment around the higher-yielding currency AUD somewhat.
Although further upside appear limited as the greenback remains broadly bid amid recent hawkish/bullish comments from Fed Chair Yellen delivered during her congressional testimony last US session.
Attention now turns towards a spate of crucial US macro releases, including the CPI and retail sales figures, for next direction on buck. While round 2 of Yellen’s testimony due later today will also grab the eyeballs.
AUD/USD Levels to watch
At 0.7656, the pair finds the immediate resistance at 0.7699 (multi-week high) above which gains could be extended to the next hurdle located 0.7750 (psychological levels) and 0.7773 (Nov 9 high). On the flip side, the immediate support located at 0.7655 (10-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7600 (round figure) and below that 0.7570 (Feb 2 low).
- R3 0.7777
- R2 0.7737
- R1 0.7697
- PP 0.7657
- S1 0.7617
- S2 0.7577
- S3 0.7537