AUD/USD: Bears guarding 200-DMA barrier

Despite upbeat Australian inflation figures, the bears continue to keep control on the Australian dollar, keeping any recovery attempt in AUD/USD capped near 0.75 handle.

AUD/USD comes down to test 5-DMA

Currently, the AUD/USD pair trades -0.25% lower at 0.7482, flirting with daily lows struck at 0.7480. The Aussie remains on the offers amid widespread risk-aversion across the financial markets, as sentiment remains unfavorable towards higher-yielding currencies amid resurfacing Hard-Brexit worries, following the UK PM May’s comments delivered over the weekend.

While upbeat Aus MI inflation data had little impact on the spot, as broad based USD strength and risk trends remain the main drivers for the major. Looking ahead, we have an action-packed week, with US inflation data, Fed speaks and Aus employment data to emerge key determinants for next direction on the AUD/USD pair.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7501/05 (200-DMA/ daily high) 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 0.7470 (daily S2). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7407 (10-DMA) and below that 0.7357 (50-DMA).