AUD/USD: Bulls take-out 0.8050 as DXY attacks 93.00

AUD/USD extended the break above 0.8000 levels in the Asian trades, as the bulls received fresh impetus from upbeat China profits data and renewed broad based USD weakness.

AUD/USD eyes on 0.8100 ahead of US GDP?

The Aussie advances for the fourth consecutive session, primarily on the back of extension of Fed induced sell-off in the greenback against its major rivals. The FOMC decision failed to provide clarity on the next rate hike move, as the Committee maintained its gradual rate hike stance conditional on the upcoming inflation data releases.

Adding to the upside in the AUD/USD pair, markets cheer stronger-than expected rise in the Chinese industrial profits data, while the second-liner disappointing Aus import prices data had little impact on the spot.

Further, rallying commodities’ prices combined with record high global indices also offer extra boost to the higher-yielding currency AUD. Focus now remains on the US durable goods data and sentiment on the global equities for near-term trading opportunities.

AUD/USD Levels to watch   

Jim Langlands at FXCharts explains, “The weekly charts suggest that at some stage we are in for a stronger test of the topside although the 200 WMA is currently providing strong resistance. A monthly close (Monday) above the 100 MMA (0.7975) would reinforce that view, and once above 0.8015 there is little to stop the Aud from heading to 0.8160. On the downside, the 100 MMA may act as a near term magnate, below which there is minor support 0.7940 and again at 0.7900, ahead of the minor double bottom at 0.7875.”

“Preferred Strategy: Looking to buy dips towards 0.7900/50 seems to be the plan, with a SL placed below 0.7875,” Jim adds.