28 Jul 2015
AUD/USD: Bulls tighten grip near 0.7300
FXStreet (Mumbai) - The mid-Asian session witnessed a fresh demand for the Australian dollar, lifting AUD/USD to fresh session highs above 0.73 handle, largely on positions unwinding ahead of key – FOMC statement scheduled for release on Wednesday.
AUD/USD hovers around 0.7300
Currently, the AUD/USD pair trades 0.41% lower at 0.7298, retracing from 0.7310 session highs. The Aussie extended its rebound from fresh six-year lows and remains firmer near 0.73 barrier as traders locked-in profits on their AUD shorts after the recent slump, stepping out to the side-lines before the Federal Reserve (Fed) policy announcement and key US macro-data due later in the week.
AUD/USD also tracked the Kiwi higher while stabilizing oil and gold prices also lent a helping hand to the resourced-linked Aussie.
ANZ analysts noted, "With the AUD now closer to fair value on a number of metrics, the sensitivity of the AUD to these various factors will likely be heightened in both directions," expecting "a touch" this week as the Fed is unlikely to change its forward guidance.
Although adding that "this is not an opportunity to go long" on the Aussie. "Risks remain to the downside and the opportunity cost of long AUD positions is high."
Traders now look forward to Wednesday’s FOMC decision and Thursday’s RBA Stevens speech is expected to emerge the main markets movers this week.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7325 (July 27 High) levels, above which gains could be extended to 0.7363 (July 24 High) levels. On the flip side, support is seen at 0.7257 (Today’s Low) levels from here it to 0.7326 (July 20 Low) levels.
AUD/USD hovers around 0.7300
Currently, the AUD/USD pair trades 0.41% lower at 0.7298, retracing from 0.7310 session highs. The Aussie extended its rebound from fresh six-year lows and remains firmer near 0.73 barrier as traders locked-in profits on their AUD shorts after the recent slump, stepping out to the side-lines before the Federal Reserve (Fed) policy announcement and key US macro-data due later in the week.
AUD/USD also tracked the Kiwi higher while stabilizing oil and gold prices also lent a helping hand to the resourced-linked Aussie.
ANZ analysts noted, "With the AUD now closer to fair value on a number of metrics, the sensitivity of the AUD to these various factors will likely be heightened in both directions," expecting "a touch" this week as the Fed is unlikely to change its forward guidance.
Although adding that "this is not an opportunity to go long" on the Aussie. "Risks remain to the downside and the opportunity cost of long AUD positions is high."
Traders now look forward to Wednesday’s FOMC decision and Thursday’s RBA Stevens speech is expected to emerge the main markets movers this week.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7325 (July 27 High) levels, above which gains could be extended to 0.7363 (July 24 High) levels. On the flip side, support is seen at 0.7257 (Today’s Low) levels from here it to 0.7326 (July 20 Low) levels.