AUD/USD – on the front foot, above 0.74

The bid tone around AUD remains strong in Asia, with the AUD/USD pair hovering around 0.7525 levels following Wednesday’s sharp rebound from a key Fibo support.

Supported by 5-DMA

The pair rebounded from 5-DMA support of 0.7508 in early trading. The FOMC minutes release turned out to be a non-event for the markets. Meanwhile, weakness in the treasury yields in Asia is capping demand for the US dollar.

Furthermore, iron ore prices is holding steady, defying calls from a string of analysts for substantial falls over the rest of 2016. Oil prices are resilient as well. Consequently, Aussie is on the front foot and appears on track to extend Wednesday’s rally.

AUD/USD Technical Levels

The immediate resistance is seen at 0.7545 (July 4 high), above which the pair could target 0.7571 (61.8% of 0.7835-0.7145). A violation there could yield 0.76 handle. On the other hand, a breakdown of support at 0.7508 (5-DMA) would open doors for a slide to 0.7450 (100-DMA + 38.2% of 0.6827 – 0.7835). A break lower would expose 0.74 handle.