AUD/USD recovers to 0.9400

FXStreet (Edinburgh) - After dipping to sub-0.9380 levels overnight, the AUD/USD is now managing to regain the boundaries of the key barrier at 0.9400.

AUD/USD follows the risk trends

Without any event or catalyst, the AUD will be following its risk-associated peers against a backdrop of increasing selling pressure around the greenback (DXY on its way to test 80.00). In the data front, Home Loans in Australia came in flat although bettering estimates for a 1% drop. “AUD traded in choppy manner yesterday and this has lead to a mixed outlook for today. Expect range trading between 0.9355 and 0.9410”, observes Quek Ser Leang, Market Strategist at UOB Group.

AUD/USD levels to watch

The pair is now advancing 0.07% at 0.9402 with the next resistance at 0.9425 (high Jul.9) followed by 0.9443 (high Jul.3) and finally 0.9499 (high Jul.2). On the flip side, a breakdown of 0.9349 (50-d MA) would open the door to 0.9342 (low Jul.7) and then 0.9327 (low Jul.3).

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