AUD/USD hits fresh 5-day highs at 0.7540

The bid tone behind the AUD/USD pair keeps growing bigger as we progress towards the Early European morning, with bulls now targeting a break above 0.7550 for further upside.

AUD/USD: RBA minutes eyed

Currently, the AUD/USD pair rallies 0.59% to 0.7535, having printed fresh five-day highs at 0.7539 earlier on the day. The Aussie is seen flirting with session tops and appears to gather pace for next leg higher, as the sentiment remains underpinned amid higher commodities’ prices and mixed US treasury yields, which weighs on the US dollar somewhat.

However, the main drivers behind the ongoing strength in the AUD/USD pair are broad based US dollar weakness alongside firmer RBA outlook, as highlighted by the Australian treasurer Morrison’s comments.  

Next on tap for the major remains the RBA’s meeting minutes ahead of the US housing data and the key FOMC decision due later on Wednesday.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7552 (20-DMA) above which gains could be extended to the next hurdle located at 0.7585 (50-DMA). On the flip side, the immediate support located at 0.7496 (daily pivot). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7437 (200-DMA).