AUD/USD: Firmer amid risk-on rally in equities & weaker DXY

Fresh bid emerged for the Aussie at 0.75 handle earlier on the day, allowing a minor-recovery back towards 200-DMA located at 0.7542.

The AUD/USD pair clings onto recovery gains, as sentiment remains lifted amid a risk-on rally in the Asian equities. The Asian indices advance underpinned by speculation the widely-anticipated labor market would come in much better-than market expectations, sealing in a Fed rate hike deal next week.

Moreover, Goldman Sachs revising higher Chinese growth forecasts for 2017 also aided the recovery in the major. However, further upside appears capped amid weaker gold and copper prices, which dampen the sentiment around the resource-linked AUD. Also, increased cautiousness ahead of the US payrolls data also keeps a check on the prices.

AUD/USD Levels to watch   

At 0.7517, the immediate resistance at 0.7542/47 (200 & 5-DMA) above which gains could be extended to the next hurdle located 0.7585/0.7607 (10 & 50-DMA) and 0.7632/36 (20-DMA/ Mar 7 high). On the flip side, the pair finds the immediate support located at 0.7481 (100-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7462 (classic S2/ Fib S3) and below that 0.7400 (round number).