AUD/USD holds above 50-DMA ahead of a Big week

The AUD/USD pair appears to have found good support near daily lows and rebounds higher towards the mid-Asian trades, underpinned by a better risk tone prevalent in the markets.

AUD/USD eyes 0.7500

Currently, the AUD/USD pair trades modestly flat at 0.7471, trying hard to take on the recovery from 0.7457 lows. The Aussie gave back losses and regained bids as positive sentiment around oil and stocks provide some support to the higher-yielding currency AUD.

However, the upside lacks follow-through as investors remain unnerved heading into a big week ahead, with plenty of risk events for the major, viz., Aus CPI, Fed decision, US durable goods etc.

Moreover, monetary policy divergence is back into the pictures after last week’s dovish RBA minutes and a string of upbeat US fundamentals, which increased odds for a Fed rate hike this year.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7528/32 (10 & 20-DMA) above which gains could be extended to the next hurdle located at 0.7550 (psychological levels). On the flip side, the immediate support located at 0.7445 (50-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7340 (200-DMA).