28 Apr 2015
AUD/USD hits new cycle highs near 0.7950
FXStreet (Mumbai) - The Australian dollar prolongs its upside bias and pierced through the 0.79 barrier against the US counterpart during the European session, driving AUD/USD to fresh cycle highs beyond 0.79 handle, largely on the back of renewed broad US dollar weakness as traders preferred to unwind their long dollar positions ahead of the Federal Open Market Committee (FOMC) meeting, which concludes on Wednesday.
AUD/USD eyes 0.80
Currently, the AUD/USD rallied over 1% and trades at fresh three month highs of 0.7948, opening doors for a retest of 0.80 key resistances. AUD/USD strengthened as the greenback remains undermined as markets expect delay in Fed rate hike timing given the recent weak US macro data. While traders also prefer to remain on the side lines ahead of Fed decision due tomorrow.
"The AUD is drifting higher as the influence of the softer USD broadens," analysts at ANZ noted. They expect Aussie's direction to be dictated by the tone of the Fed and the USD.
Moreover, Aussie remains boosted after RBA Stevens no commentary on the monetary policy today fuelled expectations of slim chances of change in the rate decision at its May 5 meeting which translated into positive sentiments for AUD traders.
On the macro economic front, markets now focus on US consumers confidence data and HPI amid a data-light US calendar today.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.8000 levels, above which gains could be extended to 0.8027 (Jan 25 High)) levels. On the flip side, support is seen at 0.7900 levels from here it to 0.7859 (Today’s Low) levels.
AUD/USD eyes 0.80
Currently, the AUD/USD rallied over 1% and trades at fresh three month highs of 0.7948, opening doors for a retest of 0.80 key resistances. AUD/USD strengthened as the greenback remains undermined as markets expect delay in Fed rate hike timing given the recent weak US macro data. While traders also prefer to remain on the side lines ahead of Fed decision due tomorrow.
"The AUD is drifting higher as the influence of the softer USD broadens," analysts at ANZ noted. They expect Aussie's direction to be dictated by the tone of the Fed and the USD.
Moreover, Aussie remains boosted after RBA Stevens no commentary on the monetary policy today fuelled expectations of slim chances of change in the rate decision at its May 5 meeting which translated into positive sentiments for AUD traders.
On the macro economic front, markets now focus on US consumers confidence data and HPI amid a data-light US calendar today.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.8000 levels, above which gains could be extended to 0.8027 (Jan 25 High)) levels. On the flip side, support is seen at 0.7900 levels from here it to 0.7859 (Today’s Low) levels.