AUD/USD drops back below 0.7300 as US dollar attempts a bounce
- AUD/USD pares gains as the King dollar looks to find its feet.
- Recent surge in natural gas prices underpins the aussie’s comeback.
- The aussie awaits acceptance above 50-DMA resistance at 0.7306.
Having faced rejection once again above 0.7300, AUD/USD is paring gains in the European session, despite the risk-on market profile.
The latest leg down in the aussie can be associated with a minor rebound in the US dollar across the board. Easing energy crisis, US debt ceiling progress and the American-Sino optimism is aiding the market sentiment, limiting the upside attempts in the safe-haven dollar.
On the other hand, the aussie dollar continues to find support from the recent surge in natural gas prices, with the US gas prices soaring as much as 40% at one point on Wednesday. Australia is a net exporter of natural gas and the world’s leading exporter of Liquified Natural Gas (LNG).
Looking ahead, the US jobless claims will be eyed for further hints on Friday’s NFP release, especially after stronger ADP jobs data almost confirmed the Fed’s tapering as early as November. Traders also await the monetary policy statement from the Reserve Bank of Australia (RBA) on Friday.
AUD/USD technical outlook
AUD/USD has turned south after hitting the 50-Daily Moving Average (DMA) resistance at 0.7306. The pair continues to trade below that key barrier since September 13. The 14-day Relative Strength Index (RSI) edges higher but remains below the midline, suggesting that the further upside could remain elusive. Therefore, the pair remains directed towards 0.7250 as long as it finds acceptance above the 50-DMA hurdle.
AUD/USD daily chart
AUD/USD additional levels to consider
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
