The AUD/USD pair extended the break higher above 0.80 handle in the European session, now flirting with fresh one-week highs posted last minutes at 0.8058.
AUD/USD ignores negative European equities
The bulls remain in complete control so far this Wednesday, helping the spot to take on the recovery from near 0.7940 levels, as the US dollar extends the sell-off below 91.50 levels against its major rivals amid increased nervousness ahead of the FOMC decision.
Moreover, large options in play also remain a key reason behind the surge in the Aussie, while a broad based rally seen across the commodities’ space also helps lift the sentiment around the commodity-currency.
However, investors continue to doubt the recent rally, as the RBA continues to underscore concerns over household debt and weaker inflation. Also, the upcoming Fed policy decision will also play decisive part to determine the next direction in the major.
AUD/USD Levels to watch
According to XM Research Department, “There is little immediate risk of a downturn right now. A move further away from 0.8000 to the upside could see a re-test of the 0.8124 peak. Clearing this high would see a resumption of the uptrend for a push towards the next major high of 0.8162 from May 2015. Overall, AUDUSD retains a technically bullish picture for the medium term. The 50-day and 200-day moving averages are positively aligned after a bullish crossover on July 14."
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