AUD/USD back on the bids, targets 100-DMA

By FXStreet FXStreet (Mumbai) – AUD/USD’s recovery from below 0.71 handle appears to gain momentum as we progress towards mid-Asia, with the prices now printing fresh session highs near 0.7130 region.

AUD/USD heading towards 100-DMA at 0.7155

Currently, the AUD/USD pair gains 0.05% to 0.7132, holding firmly above 0.71 barrier. The Aussie extends recovery from one-month lows in sync with the rebound seen in gold prices. While broad based US dollar correction after yesterday’s Fed-backed extensive rally also aids the upside in the pair.

However, the recovery is likely to remain short-lived as the greenback may resume its upside bias on the back of repatriation of year-end flows and on negative sentiment on the Asian markets, with the S&P/ASX losing -0.32% so far.

Nothing relevant for the AUD in the day ahead as focus now turns towards the US GDP print due next week, the last important data release before the Christmas-New Year lull.

AUD/USD Levels to watch

The pair trades above 0.72 handle with the immediate resistance seen at 0.7155 (100-DMA) above which gains could be extended to the next hurdle located at 0.7184/86 (50-DMA/ 5-DMA). On the flip side, the immediate support is located at 0.7090 (Dec 17 Low). Selling pressure is likely to intensify …read more

Source:: FX Street