AUD/USD intermarket: eyes on DXY at yearly lows, commodities picking up

Currently, AUD/USD is trading at 0.7983, up 0.18% on the day, having posted a daily high at 0.7985 and low at 0.7941.

AUD/USD has been in a minor recovery albeit still within the realms of yesterday's bearish range after commodity price weakness in yesterday's US session. Asia wasn't particularly active, with some price action in a narrow range of 20 pips or so. 

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Europeans were on the sidelines but in recent trade, the Aussie is now testing through previous session highs and the 50 sma on the hourly time frame at 0.7981 at the time of writing. Metals are in a better mood today and WTI has just popped through the $49 handle printing session highs at $49.69. Both US ten years and the DXY are printing in the red (lowest level this year 92.73) and risk is recovering, aiding a bid in the Aussie and higher beta currencies. 

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AUD/UD levels

Should the DXY get below the 92.50 last seen back in 2015, there is scope for the Aussie to move above 0.8100 and a key fibo as being the 0.8162/66 May 2015 peak. Given the RBA's lack of concern for the Aussie in this week's statement, it is not out of the question for it to return to 0.8295, the January 2015 high should US yields and the DXY continue to fall as commodities recover in a weak dollar environment. However, a daily close back below the 10-day MA at 0.7962 would warn of a possible correction lower.