Monday, September 28, 2015

AUD/USD finding fresh bids near hourly 100-MA, stays above 0.70

FXStreet (Mumbai) - The AUD/USD pair witnessed a fresh bout of buying interest as we progress towards the mid-Asian trades, as higher Australian stocks lift the sentiment around the Aussie.

AUD/USD faces stiff hurdle near 0.7035 levels

Currently, the AUD/USD pair trades 0.04% higher at 0.7028, unable to extend beyond the hourly 100-DMA located at 0.7035. The Aussie erased early losses and turned positive, extending its side-trend above 0.70 barrier.

The Aussie pair remains underpinned on the back of rallying domestic stocks and higher gold prices. While the greenback gave back Friday’s gains and trade subdued against its major peers as markets digest the news of US House of Representatives Speaker John Boehner’s resignation.

However, the upside in AUD/USD seems capped as the latest China’s industrial profits data refuelled concerns over China economic outlook. China is Australia’s top trading partner.

Meanwhile, markets turn their focus towards the upcoming US inflation data due and a slew of Fed officials’ speeches due later in the day for fresh incentives.

AUD/USD Levels to watch

The pair has an immediate resistance at 0.7042 (Sept 8 High) levels, above which gains could be extended to 0.7096 (Sept 23 High) levels. On the flip side, support is seen at 0.6984 (Sept 23 Low) levels from here it to 0.6943 (Sept 10 Low).
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