AUD/USD spikes to 0.7660 on RBA’s Lowe

The AUD/USD pair finally broke higher from a downside consolidative phase seen since mid-Asia, following some optimistic remarks from the RBA governor Lowe on the Australian economic outlook and exchange rate level.

The renewed uptick in the Aussie can be also attributed to a steady recovery seen in the Australian 10-year government bond yields, with the rate now turning positive to trade near 2.66%. In early Asia, the Aus 10-yr bond yields dropped to the lowest levels since November, reaching 2.642%.

Markets continue to assess RBA Lowe’s comments, as attention now turns towards the US jobless claims and Fed speaks due on the cards in the NA session.

AUD/USD Levels to watch   

At 0.7655, the pair finds the immediate resistance at 0.7672 (daily R1) above which gains could be extended to the next hurdle located 0.7699 (multi-week high) and 0.7750 (psychological levels). On the flip side, the immediate support located at 0.7593 (20-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7526 (200-DMA) and below that 0.7500 (zero figure).