AUD/USD bounces towards 0.7600 as Oil regains poise

The bid tone in the AUD keeps growing bigger in the Asian trades, lifting AUD/USD from near 0.7550 region in a bid to regain 0.76 handle.

The latest leg higher in the commodity currency Aussie, can be mainly attributed to the renewed strength seen in oil prices, as the recovery in the black gold regains traction amid surprise US stocks draw and news of explosion and fire reported at Syncrude oil sands plant.

Moreover, the Aussie also tracks solid gains seen in its OZ neighbor, after the Kiwi was boosted by upbeat NZ current account data. Also, slight weakness in the USD index collaborates to the positive tone in AUD/USD.

Looking ahead, next on tap for the major remains the US CPI and retail sales data due later in the NA session. Meanwhile, the FOMC decision will hog the limelight, with a 25 bps rate hike and upward revisions to the US economic forecasts already discounted.

AUD/USD Levels to watch   

At 0.7573, the immediate resistance at 0.7600/09 (zero figure/ Mar 8 high) above which gains could be extended to the next hurdle located 0.7625/36 (classic R3/ Mar 7 high) and 0.7650 (psychological levels). On the flip side, the pair finds the immediate support located at 0.7544 (200-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7486 (100-DMA) and below that 0.7426 (Jan 12 low).