AUD/USD struggle with 0.7370 extends, Aus MYEFO in focus

AUD/USD extends its overnight side-trend into Asia, now oscillating back and forth in a 20-pips narrow range amid broad USD consolidation after the recent upsurge.

AUD/USD underpinned amid rebound in commodities

Currently, the AUD/USD pair trades +0.14% at 0.7368, flirting with daily tops just one pip ahead of the last. The Aussie consolidates the Fed-induced downfall and remains capped below the daily pivot, despite a broad based minor-correction seen in the US dollar after yesterday’s relentless rise on rallying treasury yields, in wake of Fed’s projections of 3 rate hikes next year (up from 2 seen in Sept FOMC meeting).

Also a rebound in commodities, especially gold, copper and oil prices, lend a helping hand to the renewed upside in the major.

Markets now eagerly await the Australian Government's Mid-year Economic and Fiscal Outlook (MYEFO) due to be published on Monday for fresh impetus on the AUD. BBG Survey on the MYEFO: Australian Govt to lower its real GDP growth forecast

In the meantime the spot will continue to closely follow the USD price-action ahead of the US housing data slated for release in the NA session today.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7374 (daily pivot) above which gains could be extended to the next hurdle located 0.7400 (round number) and 0.7426 (5-DMA). On the flip side, the immediate support located 0.7349 (daily low). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7338 (3-week/ post-FOMC low) and below that at 0.7300 (zero figure).