AUD/USD surges through 0.76 handle to hit fresh one-week high

Haresh Menghani FXStreet

The AUD/USD pair continued gaining traction for the third consecutive session and has now jumped to one-week highs near 0.7610 region.

A mildly weaker US Dollar, led by subdued action around the US Treasury bond yields helped the pair to build last week's sharp recovery move from the very important 200-day SMA. Moreover, Monday's disappointing US durable goods orders data also gave investors reason to be cautious about buying the greenback and remained supportive of the pair's up-move for the third consecutive session.

Adding to this, positive trading sentiment surrounding commodity space provided an additional boost to commodity-linked currencies and further collaborated to the pair's move back above the 0.7600 handle.

It, however, remains to be seen if the pair is able to attract any follow through traction amid expectations of hawkish scripts from Philadelphia Fed President Patrick Harker and the Fed Chair Janet Yellen, scheduled to speak later during the day.

On the economic data front, the release of Conference Board's Consumer Confidence Index would also be looked upon for some trading impetus during early NA session.

In the meantime, the RBA Assistant Governor Debelle’s speech, due during the European session, would be looked upon for fresh insight over the RBA's monetary policy outlook and should also influence sentiment surrounding the major.

Technical levels to watch

Momentum beyond 0.7615 level could get extended back towards two-month highs resistance near 0.7630-35 region, above which the pair seems all set to head towards testing 0.7675-80 horizontal resistance before aiming to reclaim the 0.7700 handle.

On the flip side, 0.7585-80 region now seems to protect immediate downside, which if broken would turn the pair vulnerable to break below mid-0.7500s intermediate support and challenge 200-day SMA important support near 0.7530 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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