AUD/USD through the roof in tandem with gold

By FXStreet FXStreet (Mumbai) – The solid performance witnessed in the commodity space, with gold price outperforming, aids the Aussie to score fresh eight-week highs.

AUD/USD breaches daily R3

Currently, the AUD/USD pair trades 0.31% higher at fresh two-month peaks of 0.7369, and now aiming to conquer 0.74 handle. The Aussie was caught by a renewed bid-wave near 0.7350 region – confluence of the H1 10-SMA and S2 and stormed its way higher.

The AUD/USD pair rallies in sync with its other commodities-currencies as the latest rally in gold and copper prices triggered a fresh bout of buying in the Aussie. Gold rallied to fresh 7-week highs and trades +0.94% while copper extends Friday’s gains and trades 0.74% higher. While the US oil is up 0.32%, retreating from daily highs.

The Aussie ignored subdued European indices and jumps mainly driven by the commodity rally while broad based US dollar weakness backed by the dovish Fed minutes also keeps the AUD underpinned.

AUD/USD Levels to watch

The pair has an immediate resistance at 0.7371 (H1 R2) levels, above which gains could be extended to 0.7400 (round number) levels. On the flip side, support is seen at 0.7349 (H1 10-SMA & S2) levels from here it to 0.7296 …read more

Source:: FX Street