AUD/USD bounces-off daily lows, back above 0.7400

The bulls fought back control over the last hour, pushing AUD/USD back on the bids from a dip to daily lows as the extended risk-on rally in the equities continue to underpin market sentiment.

AUD/USD regains 5-DMA at 0.7405

Currently, the AUD/USD pair trades +0.31% higher at fresh session highs of 0.7409, having revisited daily lows near 0.7382. The Australian dollar manages to keep the upper edge versus its American rival for the second straight session today, as the demand for higher-yielding/ risk currencies is on the rise amid a better risk tone prevalent in the markets. The Japanese Nikkei 225 index jumps +1.49%, while Australia’s ASX 200 rallies +0.84% so far.

Moreover, oil prices continue to move higher for the second consecutive day, which also adds to the upbeat sentiment around the resource-linked AUD. However, the upside seems capped as the greenback remains on the front foot against its major peers after better-than expected US GDP and consumer confidence data released Tuesday.

Looking ahead, the broader market sentiment will continue to play a crucial role ahead of a fresh batch of US economic releases due later in the NA session.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7425/30 (20-DMA/ daily pivot) above which gains could be extended to the next hurdle located at 0.7447 (10-DMA). On the flip side, the immediate support located at 0.7304 (200-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7283 (Jun 16 low).