AUD/USD strongest in Europe, but capped below 0.7450

The Aussie remains the biggest gainer across the fx board so far this session, keeping AUD/USD strongly bid on 0.74 handle, in response to an upward revision to 2017 iron-ore price forecasts by Goldman Sachs.

AUD/USD rejected just above 10-DMA at 0.7441

Currently, the AUD/USD pair trades +0.39% higher at 0.7431, receding from session highs previously posted at 0.7445.  The AUD/USD pair extends its winning streak into a third-day today, as the bulls received fresh boost from Goldman Sachs’s upwardly revised price-forecasts for iron-ore in the year ahead. Iron-ore is Australia’s top export product.

The upbeat tone behind the spot is also on the back of improved business sentiment in China. However, the latest leg down in the major can be partly attributed to the resurgent USD demand across the board, as we move closer towards the release of the FOMC meeting minutes.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7441/45 (10-DMA/ daily top) above which gains could be extended to the next hurdle located 0.7485 (daily R3) and 0.7500 (round number). On the flip side, the immediate support located 0.7400 (round number). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7373 (5-DMA) and below that at 0.7305 (multi-month lows).

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