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16 Jul 2015
AUD/USD recovers to 0.7380 on improving inflation expectations
FXStreet (Mumbai) - The Australian dollar recovered from fresh fresh-six-year lows and erased most losses versus the US dollar in the mid-Asian session, now pushing AUD/USD towards 0.7400 levels, as the AUD bulls received some support from an uptick in inflation expectations print released in early Asia.
AUD/USD rises from 0.7355
Currently, the AUD/USD pair trades modestly flat at 0.7375, struggling to recover from 0.7355 – fresh six year lows. The Aussie manages to recover lost ground as the traders cheer rising MI inflation expectations data.
The expected inflation rate reported in the Melbourne Institute Survey of Consumer Inflationary Expectations rose by 0.4 percentage points to 3.4 percent in July from 3.0 percent in June.
However, the upside remains capped on the back of strengthening US dollar across the board following Wednesday’s Fed Yellen’s hawkish comments, with the DXY higher to the tune of 0.10% and trades at 97.38.
Meanwhile, markets digest the latest ‘Yes’ Greek Parliament vote on the bailout deal while awaiting a series of crucial US data releases later tonight. Fed Yellen’s will continue her testimony for the second day before the Senate Banking Committee, in Washington.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7400 levels, above which gains could be extended to 0.7489 (July 15 High) levels. On the flip side, support is seen at 0.7355 (July 15 Low) levels from here it to 0.7320 levels.
AUD/USD rises from 0.7355
Currently, the AUD/USD pair trades modestly flat at 0.7375, struggling to recover from 0.7355 – fresh six year lows. The Aussie manages to recover lost ground as the traders cheer rising MI inflation expectations data.
The expected inflation rate reported in the Melbourne Institute Survey of Consumer Inflationary Expectations rose by 0.4 percentage points to 3.4 percent in July from 3.0 percent in June.
However, the upside remains capped on the back of strengthening US dollar across the board following Wednesday’s Fed Yellen’s hawkish comments, with the DXY higher to the tune of 0.10% and trades at 97.38.
Meanwhile, markets digest the latest ‘Yes’ Greek Parliament vote on the bailout deal while awaiting a series of crucial US data releases later tonight. Fed Yellen’s will continue her testimony for the second day before the Senate Banking Committee, in Washington.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7400 levels, above which gains could be extended to 0.7489 (July 15 High) levels. On the flip side, support is seen at 0.7355 (July 15 Low) levels from here it to 0.7320 levels.