AUD/USD ignores drop in commodities, peeps above 23.6% Fib

The AUD/USD extended the early Asian gains to trade above 0.7421 (23.6% of Nov 8 high - Nov 21 low) despite the losses in gold and copper. 

Having recovered from the low of 0.7364 on Thursday, the pair advanced to a high of 0.7435 in the Asian session. 

The AUD has held up well despite losses in other major currencies and gold. The yellow metal has been dumped in Asia to a low of $1172, despite which the Aussie strengthened 0.35%. 

The resilience could be due to the jump in the Iron ore prices above $75/tonne. The spot remains at the mercy of the overall action in the US dollar, given the data calendar is light in the US. 

AUD/USD Technical Levels

A failure to hold above 0.7421 (23.6% of Nov 8 high - Nov 21 low) would open doors for a sell-off to 0.7364 (previous day’s low), under which the recent cyclical low of 0.7311 could be put to test. On the other hand, a break above 0.7449 (Wednesday’s high) could yield a rally to 0.7489 (38.2% of Nov 8 high - Nov 21 low) and 0.75 (zero figure).