AUD/USD catches fresh bid, swings back to 0.7115

By FXStreet The AUD/USD pair stalled its 2-day decline ahead of 50-DMA and now trims losses, swinging back above 0.71 handle, as the focus continues to remain on the oil trends.

AUD/USD finds support above 50-DMA at 0.7087

Currently, the AUD/USD pair drops –0.60% at 0.7114, reversing a brief dip to session lows posted at 0.7094. The Aussie recovers a part of RBA’s Edwards-induced losses and now attempts to extend further beyond 0.71 handle as the risk-off moods appear to have cooled-off a bit as the Asian indices are seen paring losses, especially the Japanese stocks.

Earlier in Asia, RBA’s Edwards talked down the Aussie, which triggered fresh selling in the AUD/USD pair, knocking-off the prices below 0.71 handle. RBA’s Edwards said, he would be more comfortable with AUD/USD at 0.65. Further, the overnight drop in the oil prices following Saudi’s refusal to slash output and reports of record high US crude reserves, weighed on the resource-linked Aussie.

Looking ahead, all eyes remain on the US docket, with the crucial US CPI figures lined up for release, while oil price action also will be closely watched.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7135/42 (100-DMA/ 1h 100-SMA) above which gains …read more

Source:: FX Street