AUD/USD advances near 0.7040, weekly highs

FXStreet (Edinburgh) - The prevailing risk-on trade is helping AUD/USD to advance further at the end of week, clinching tops around 0.7040.

AUD/USD rebounds from 0.6820

The Aussie dollar has managed to bounce off fresh mutli-year lows around 0.6820 vs. the dollar earlier in the week, snapping two consecutive weeks of losses and retaking the psychological barrier at 0.7000 during Asian trading hours today.

The ECB-induced risk-on environment plus better conditions in the Chinese markets has been favouring the riskier assets as of late, lending extra legs to AUD and sustaining the current upside momentum.

AUD/USD significant levels


At the moment the pair is up 0.16% at 0.7020 facing the next resistance at 0.7065 (20-day sma) followed by 0.7154 (55-day sma) and finally 0.7363 (200-day sma). On the other hand, a breach of 0.6824 (low Jan.14) would expose 0.6283 (monthly low March 2009) and then 0.6073 (monthly low Nov.2008).

GBP/USD: Above 5-DMA for the first time in three weeks

At 1.4235, the GBP/USD pair is trading above its 5-DMA (seen today at 1.4211) for the first time after December 28th, 2015.
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Hong Kong: Repeat of 1997 economic woes seems unlikely – Nomura

Research Team at Nomura, suggests that there are increasing concerns over the sustainability of the USD/HKD peg, known formally as the Linked Exchange Rate System (LERS), within the current convertibility undertaking of 7.75-7.85.
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