FxWirePro: AUD/USD unable to holds gains above the 0.72 handle, 61.8% Fib caps upside
AUD/USD's recovery from its lowest level since early March was capped at 61.8% Fib retrace level at 0.7212. Risk-on early on Wednesday supported the commodities and thereby commodity-linked currencies like the AUD. AUD/U…
AUD/USD's recovery from its lowest level since early March was capped at 61.8% Fib retrace level at 0.7212.
Risk-on early on Wednesday supported the commodities and thereby commodity-linked currencies like the AUD.
AUD/USD extended recovery upto session highs at 0.7219, but was unable to hold on to the 0.72 handle.
Pair slipped lower and is currently trading around 0.7192 levels.
61.8% Fib retrace of Jan to April rally at 0.7212 is strong resistance on the upside. Breaks above find next resistance at 200-DMA by 0.7253.
Data released earlier showed Australia's total construction fell further in Q1, for ninth quarter in the past ten quarters, by 2.6% as against consensus expectations of a fall of 1.5%.
Disappointing construction output data further fueled speculations of an imminent RBA rate cut denting any further recovery for the pair.
Also, rising expectations that the Fed could hike at any of the next few meetings, pushing the US dollar higher.
Weakly charts are biased lower, we see scope for test of 0.7042 (78.6% Fib), bearish invalidation only above 0.73 levels.
