Audusd Turns Higher On Risk On Mood

 Audusd Turns Higher On Risk On Mood

Aud/Usd Turns Higher On Risk-On Mood

The market's sentiment has turned positive, lending support to the AUD/USD. Especially after the release of the Australian wage price index, the AUD/USD has become more bullish.

The recent release of the wage price index from Australia was below the forecasts and thus provides insight into labour cost inflation. According to experts, the data from Australia has improved the risk appetite which is a good thing for the Australian Dollar.

Aud/Usd Faces Resistance At 0.6647

If the current bullish momentum in the AUD/USD continues, it will open the doors to 0.6647 which is also the high from May. After that, the next hurdle for the AUD/USD will be at 0.6667 and then the 0.6871.

But if the bears take control of the AUD/USD, it will mean a revisit to the 0.6570 and the 0.6541 where the 100 & 55 SMA are present. If the AUD bulls lose both of these dynamic support levels, the next level to watch out for will be 0.6520 where the 200 SMA (D1) is located.

The bigger picture tells us that the AUD/USD is all ready for further gains as long as the bulls can trade above the 200 SMA.

The 4-hour chart also shows that the AUD bulls are in control, with the nearest resistance levels at 0.6647 and then 0.6667. As for the support levels, it can be seen at 0.6585 and then at 0.6557. Meanwhile, the AUD/USD 4-hr chart also shows that the RSI is hovering near 60, once again a sign of bullish momentum.

Overall, the selling pressure seen in the greenback has made it possible for pairs like AUD/USD to turn higher. That's one of the big reasons why the AUD/USD has managed to reclaim the 0.66 handle.

On the US side, the dollar is under pressure after the release of the PPI and the upcoming CPI. Additionally, the US yields are also on the back foot as the market players have adopted a more cautious approach ahead of the CPI.

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