AUD/USD: Recovery stalls at 5-DMA, despite solid Aus data

The AUD/USD pair staged a solid comeback beyond 0.76 handle in the Asian session, mainly driven by upbeat Australian retail trade data.

AUD/USD capped by 5-DMA

Currently, the AUD/USD pair trades +0.17% higher at 0.7634, easing-off session highs previously posted at 0.7645, where 5-DMA intersects. The Aussie consolidates the recovery as we progress towards the European session, with the sentiment underpinned by better-than expected Australian retail sales data and rebound in commodities’ prices.

However, the recovery appears to lack follow-through as the USD bulls still remain in charge somewhat, with all eyes now turning towards the US jobs and factory data due later in the NA session. While investors continue to weight Brexit uncertainty and ECB taper talks, keeping a check on the higher-yielding AUD.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7693 (Oct 4 high) above which gains could be extended to the next hurdle located at 0.7713 (3-week high) and 0.7736 (Sept 8 high). On the flip side, the immediate support located at 0.7606 (50-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7554 (100-DMA) and below that at 0.7483 (200-DMA).