AUD/USD remains bid, upside capped by 50-day MA

  • Equities keep Aussie better bid, but the upside in AUD/USD is being capped by 50-day MA.
  • Focus on the US retail sales.

The currency pair found bids in Asia as the Asian equities ticked higher, tracking the 0.5 percent rise in the S&P 500 futures. Moreover, the investors seem to have taken a heart from the fact that US-led strikes on Russia did not invite Russian retaliation.

Still, a convincing break above the 50-day moving average (MA) resistance lined up at 0.7781 remains elusive. That said, the bulls may come in strong if the risk-on action picks up the pace in Europe and US session.

Eyes US retail sales

The consumer spending as represented by retail sales is expected to rise 0.3 percent month-on-month in March vs 0.1 percent contraction in February. A better-than-expected data could put a bid under the greenback. The data is due at 12:30 GMT.

AUD/USD Technical Levels

As of writing, the currency pair is trading at 0.7775. A convincing move above 0.7781 (50-day MA) would open up upside towards 0.7810 (previous day's high) and 0.7724 (200-day MA). On the downside, breach of support at 0.7760 (ascending 5-day MA) would expose support seen at 0.7738 (April 12 low) and 0.77 (psychological level).

 

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