AUD/USD Targets 0.7478 Thanks To The Squeeze On Industrial Metals

·2 min read

The Aussie has been one of the top-performing currencies this week, and it has extended its lead against the greenback for the third consecutive day.

AUD/USD Pair Rallies Higher

The AUD/USD pair is up by more than 0.6% so far today as the Aussie continues its recent rally. The Aussie has attracted buying interest in recent trading sessions, and it continues to take advantage of this moment to record higher gains against other major currencies.

At the time of writing, the AUD/USD pair is trading at 0.7420, up by 0.63% over the past few hours. The mixed Australian jobs and Chinese inflation figures didn’t affect the Aussie’s performance today, and it could rally higher over the coming hours.

Despite the mixed Australian jobs and Chinese inflation figures, the greenback didn’t do itself any favors with the FOMC minutes. The FOMC minutes published yesterday show that the FED could make changes to its policies before the end of the year. The staled negotiation with the EU regarding steel tariffs also puts a dent in the USD’s performance.

AUD/USD chart. Source: FXEMPIRE
AUD/USD chart. Source: FXEMPIRE

AUD/USD Targets The 0.7478 Level

The AUD/USD pair could surge higher towards the 0.7478 level over the coming trading sessions if the Aussie maintains its current momentum. The buying interest on the Aussie and the USD’s performance could dictate how the pair perform over the next few hours.

Market participants are currently waiting for the US PPI figures and the statement from the Federal Reserves. These would help investors determine how to approach the greenback later today.

On the flip side, if the greenback regains strength over the coming hours, then the AUD/USD pair could struggle to maintain its position above the 0.7440 level. The pair could drop towards the next major support level at 0.7330 level in the coming hours. Unless the bearish sentiment grows stronger, the AUD/USD pair should steer clear of the 0.7290 support level in the short term.

This article was originally posted on FX Empire

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