AUD/USD re-attempts 0.7500, despite USD strength

The AUD/USD pair continues to waver in a tight range so far this session, after having ran into stiff resistance just shy of 0.75 barrier on several occasions.

The Aussie is seen making another attempt to regain 0.75 handle, despite the greenback regaining traction across the board as the US government looks likely to avoid a financial shutdown.

Moreover, the spot finds support from a risk-friendly environment, as political uncertainty over the French election and US government shutdown wanes.

However, weaker commodities’ prices, particularly gold and copper, may keep the upside capped in the commodity currency. Copper prices on Comex are down -0.60% to $ 2.595/ pound, while gold drops -0.30% to $ 1264.50.

The spot remains in thin trading ranges also as markets turn cautious ahead of Caixin Chinese PMI data and RBA’s interest rate decision due tomorrow. Meanwhile, the US treasury secretary Mnuchin’s speech, ISM manufacturing PMI and Core PCE price index will be eyed for fresh impetus.

AUD/USD Levels to watch   

At 0.7488, the pair finds the immediate resistance at 0.7500 (round number) above which gains could be extended to the next hurdle located 0.7514/27 (10 & 20-DMA) and 0.7550 (psychological levels). On the flip side, the immediate support is located at 0.7471 (daily low/ Fib S2). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7446 (Jan 13 low) and below that 0.7400 (zero figure).