Forex News Asia: Aussie starts week’s first session on positive note

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The Australian Dollar gained in the early parts of today’s first session, rising by over 50 pips from an open of 1.0708 to reach a high of 1.0762 as it smoothly ascended, following on from Friday’s late US session movement.

 

The recent gain for the Aussie sees it recovering from a near 5 cent drop, where the AUDUSD pair dropped from a high of 1.1010 that was reached last Monday, to a low of 1.0535 reached last Thursday. The drop came in correlation with steeply declining commodity prices, including Gold which dropped by over 7% from an all time high of $1575.7 per ounce to a low of $1462.2 on the same dates. The precious metal gained some strong support since last Thursday from the 55-day moving average, which is currently around the $1460 levels, and has since gained to reach levels just shy of $1500 per ounce.

 

The Aussie is currently trading around the 1.0740 levels, with support seen around the 1.0630’s, with further support at last Thursday’s low of 1.0535. Resistance is seen at last Friday’s high and currently around the 10-day moving average of 1.0801, with further resistance around 1.0875.