AUD/USD rebounds sharply to test 0.7500

The AUD/USD pair stalled its overnight downslide near 0.7460 region, and from there made a solid comeback in a bid to regain 0.75 handle.

AUD/USD back above 100-DMA at 0.7484

Currently, the AUD/USD pair trades +0.16% higher at fresh daily highs of 0.7492, extending the upmove from 0.7465 levels. The Aussie caught a fresh bid-wave last hours after the greenback weakened dramatically across the board, as markets resorted to profit-taking on their USD-longs after yesterday’s massive rally, triggered by a slump in GBP/USD.

However, it remains to be seen if the Aussie sustains the bounce as tumbling Asian equities as well as copper prices are expected to hit the sentiment around the higher-yielding commodity currency.

Next on tap for the major remains the Fedspeaks due later on Tuesday ahead of tomorrow’s US CPI report.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7503/05 (200-DMA) above which gains could be extended to the next hurdle located 0.7550 (psychological levels) and 0.7600 (round figure). On the flip side, the immediate support located 0.7452 (daily S1). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7422 (10-DMA) and below that 0.7360 (50-DMA).