25 Aug 2015
AUD/USD swings back higher with commodities, beyond 0.7200
FXStreet (Mumbai) - AUD/USD seems to have regained lost ground and erased a half of yesterday’s massive losses as markets ignored Shanghai bears in early moves with Aussie bouncing along with rebounding oil and metals prices.
AUD/USD experiencing a solid recovery
Currently, the AUD/USD pair trades 1.02% higher at 0.7227, extending the recovery from 0.7165 session lows. The Aussie rebounds from fresh cycle lows and remained firmer in Asia largely backed by re-emergence of risk-on trades after most Asian equities bounced-back while the commodities space also witnessed a solid turn around following a horror day on Monday.
Commodities rebounded on Tuesday from their multi-year low levels with WTI gaining 1.52% at $ 38.82, copper prices advancing 1.50% at $ 2.27 and gold supported above $ 1150. On equities front, most major markets rebounded, paring early losses with the benchmark Australian S&P/ASX200 gaining % to 5,125 points, and Japan's benchmark Nikkei 225 index up 1.1% to 18745 points. While markets ignored the persistent weakness in Chinese stocks.
Later in the day, markets will shift their focus towards a slew of US economic releases including the consumer confidence figures ahead of the key durable goods and GDP data due later this week.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7233 (Today’s High) levels, above which gains could be extended to 0.7312 (Aug 23 High). On the flip side, support is seen at 0.7165 (Today’s Low) levels from here it to 0.7100.
AUD/USD experiencing a solid recovery
Currently, the AUD/USD pair trades 1.02% higher at 0.7227, extending the recovery from 0.7165 session lows. The Aussie rebounds from fresh cycle lows and remained firmer in Asia largely backed by re-emergence of risk-on trades after most Asian equities bounced-back while the commodities space also witnessed a solid turn around following a horror day on Monday.
Commodities rebounded on Tuesday from their multi-year low levels with WTI gaining 1.52% at $ 38.82, copper prices advancing 1.50% at $ 2.27 and gold supported above $ 1150. On equities front, most major markets rebounded, paring early losses with the benchmark Australian S&P/ASX200 gaining % to 5,125 points, and Japan's benchmark Nikkei 225 index up 1.1% to 18745 points. While markets ignored the persistent weakness in Chinese stocks.
Later in the day, markets will shift their focus towards a slew of US economic releases including the consumer confidence figures ahead of the key durable goods and GDP data due later this week.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7233 (Today’s High) levels, above which gains could be extended to 0.7312 (Aug 23 High). On the flip side, support is seen at 0.7165 (Today’s Low) levels from here it to 0.7100.