AUD/USD drops back to test 0.7600, Fedspeaks eyed

Dhwani Mehta FXStreet

The bullish run in the Aussie lost pace near 0.7625 region, now sending the rate lower to test the resistance-turned support at 0.7600.

AUD/USD trades above all major DMAs

The bulls appear to face exhaustion after the latest leg higher, which was backed by a solid recovery staged by gold prices, while firmly higher oil prices also bolstered the bids around the commodity-currency.

Further advances were capped by stalled USD selling versus its major rivals, as Treasury yields picked-up pace across the curve heading towards the Fed Chair Yellen’s speech due later today.

Meanwhile, the US CB consumer confidence data and Fed official Harker’s speech will also remain in focus for fresh incentives on the US dollar.

AUD/USD Levels to watch

At 0.7606, the pair finds the immediate resistance at 0.7630-40 (key resistances) above which gains could be extended to the next hurdle located 0.7680 (Mar 30 high) and 0.7700 (zero figure). On the flip side, the immediate support is located at 0.7550 (psychological levels). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7533 (100-DMA) and below that 0.7509/0.7497 (200-DMA/ Jun 7 low).

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.

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