AUD/USD trims losses from one-week lows as oil soars

A rally in crude oil prices boosts equity prices, risk appetite.
AUD/USD spikes to 0.6075 and retreats to 0.6050, Aussie still in negative territory.

Matías Salord FXStreet

The AUD/USD bottomed at 0.6003 after the beginning of the American session the weakest level since March 26 amid a rally of the greenback. Recently spiked to 0.6075 following a sharp increase in crude oil prices. As of writing, it is hovering around 0.6050, in negative territory for the day, still holding a bearish bias but far from the low.

The move higher took place after comments from US President Trump regarding the oil market that sent Wall Street from negative territory to being up by almost 2%. Crude prices were already higher on Thursday and Trump’s comments pushed them further to the upside. The improvement in risk appetite helped the AUD/USD that was trading at weekly lows.

Previously, US jobless claims data showed another dramatic increase to more than 6 million last week. The report created concerns and boosted the demand for the greenback and the yen. Fed’s Kaplan mentioned he expects a severe contraction during the second quarter, a negative reading in Q3 and then a rebound.

In Australia, economic data due on Friday includes the March Service PMI and February retail sales.

Technical levels

The short-term trend in AUD/USD still points to the downside. A recovery above 0.6120 would strengthen the Aussie. On the downside, critical support levels emerge at 0.6020 and 0.6000 (daily low).

AUD/USD

Overview
Today last price	0.6055
Today Daily Change	-0.0016
Today Daily Change %	-0.26
Today daily open	0.6071

Trends
Daily SMA20	0.6153
Daily SMA50	0.6469
Daily SMA100	0.667
Daily SMA200	0.6758

Levels
Previous Daily High	0.6186
Previous Daily Low	0.6039
Previous Weekly High	0.62
Previous Weekly Low	0.57
Previous Monthly High	0.6686
Previous Monthly Low	0.5509
Daily Fibonacci 38.2%	0.6095
Daily Fibonacci 61.8%	0.613
Daily Pivot Point S1	0.6011
Daily Pivot Point S2	0.5952
Daily Pivot Point S3	0.5864
Daily Pivot Point R1	0.6159
Daily Pivot Point R2	0.6246
Daily Pivot Point R3	0.6306

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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