AUD/USD – attempting gains above hourly 50-MA

AUD/USD is on the rise, attempting gains above hourly 50-MA of 0.7540 which appear hard to come as investors worry about a potential rating downgrade of Australia.

Eyes NAB Business confidence release

The currency awaits the release of NAB Business confidence and Business conditions number for the month of June. We also have credit card purchases due for release. Markets would be all ears when RBA’s Ellis gives speech in Sydney later today.

Apart from the data and the RBA speak, the currency pair could takes cues from oil prices. The pair is struggling to extend gains above hourly 50-MA as the American dollar is holding onto the overnight gains it enjoyed after the S&P 500 hit record highs.

AUD/USD Technical Levels

The spot currently trades around 0.7542. Break above hourly 50-MA has happened, but needs to be followed by a move above 0.7545 (July 4 high) if the pair has to re-test 0.7571 (61.85% of 0.7835-0.7145). A break higher could yield 0.76 levels. On the downside, 5-DMA level of 0.7528 is a strong support, which if breached would expose 0.7490 (50% of 0.7835-0.7145). Further losses could run into support around 0.7460 (100-DMA).