AUD/USD extends 3-day winning streak, 0.7500 eyed

The AUD/USD pair extends its bullish momentum into a third day today, now testing Friday’s of 0.7482 levels, in another towards 0.75 handle.

AUD/USD: 20-DMA at 0.7505 next on sight?

Currently, the AUD/USD pair jumps +0.42% to 0.7476, hovering within a striking distance of session highs reached at 0.7480 last minutes. The upbeat momentum behind the Aussie gains traction this Monday, largely on the back of a robust recovery staged by gold prices and stabilizing oil prices, which bolsters the bids for the resource-linked AUD.

Moreover, broad based US dollar correction, after the recent strength backed by Trumponomics and increased Dec Fed rate hike bets, has also supported the latest move higher in the AUD/USD pair.

However, further upside appears to lack momentum as cautious sentiment prevail so far this session, as markets fret whether OPEC’s output cut decision will be reached at its final meeting on Wednesday, after war of words witnessed between major OPEC producers last Friday.

While focus shifts towards major economic releases from both US and Australia, which are expected to have a significant impact on the spot. We have the GDP and NFP report due out from the US docket later this week, while from Australia, we have buildings approval and private capex data.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7505 (Nov 17 high/ 20-DMA) above which gains could be extended to the next hurdle located 0.7550 (daily R1) and 0.7575 (50-DMA). On the flip side, the immediate support located 0.7431 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7400 (10-DMA) and below that at 0.7358 (Nov 24 low).

To learn more about this topic, check our video analysis