AUD/USD rebounds towards 0.7400 as risk-on returns

The AUD/USD pair stalled its overnight downslide well ahead of 200-DMA support located at 0.7304, and staged a solid rebound as risk sentiment improved slightly amid higher oil prices.

AUD/USD heading towards 0.7400

Currently, the AUD/USD pair trades +0.72% higher at fresh session highs of 0.7385, having caught fresh bids since Asia opening as risk-on trades returned to markets after 2-days of Brexit-led panic and market unrest.

The Aussie extends its recovery mode from almost one-week lows as markets resort to take profits off the table after the recent massive sell-off backed by the mounting concerns fuelled by the Brexit vote. The Japanese benchmark Nikkei 22 index wiped-out almost entire losses and trades modestly flat at 15.305 points, while Australia’s ASX 200 moved-off lows to now trade -0.86% lower, just shy of 5,100 levels.

Markets appears to have moved past the Brexit decision and poor Chinese data and Yuan weakening news, as all eyes now remain on the US final GDP and consumer confidence data due later in the NA session.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7425/30 (20-DMA/ daily pivot) above which gains could be extended to the next hurdle located at 0.7484 (5-DMA). On the flip side, the immediate support located at 0.7387 (daily low). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7357 (50-DMA).