AUD/USD ends 3-day bullish run, targets 10-DMA

The AUD/USD pair fell for the first in four days this Tuesday, driven by selling across the commodities space and renewed strength in the US dollar across the board.

AUD/USD nears 5-DMA support at 0.7449

Currently, the AUD/USD pair drops -0.20% to 0.7466, hovering within a striking distance of daily lows struck at 0.7459 in the last hour. The Australian dollar is seen retracing a part of the recent rally versus the US dollar in the Asian session, knocking-off the rate further below 0.75 handle.

The major came under fresh selling pressure after sentiment turned cautious amid increased nervousness surrounding the ongoing OPEC output cut/freeze talks, and hence, weighed on the oil prices, eventually impacting the resource-linked AUD. Also, tumbling copper prices dragged the Aussie lower.

Further, it can be also seen that a pick-up in demand for the US dollar has also contributed to the weakness surrounding the AUD/USD pair. The USD index regains poise and trade as around 101.40, up +0.18% on the day.

The immediate focus now remains on the US GDP release and Fed speaks due on the cards later tonight, while the Australian private capex data and US NFP report will remain the next key drivers for the spot later this week.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7505 (Nov 17 high) above which gains could be extended to the next hurdle located 0.7543 (daily R2) and 0.7572 (50-DMA). On the flip side, the immediate support located 0.7449 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7405 (10-DMA) and below that at 0.7358 (Nov 24 low).

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