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8 Jan 2015
Gains in AUD/USD capped at 10-DMA
FXStreet (Mumbai) - The gains in the AUD/USD pair have been capped at the 10-DMA level located at 0.8166, tracking the recovery in the US Treasury yields.
The pair now trades 0.35% higher for the day at 0.8104 levels, compared to the previous session’s close at 0.8072 levels. The Aussie gained strength earlier today after the Australian Bureau of Statistics said that building approvals increased by 7.5% in November, beating the expectation of a 3.5% decline. However, the gains have been capped as the demand for USD remained underpinned after the Fed minutes released yesterday did little to alter the expectations that U.S. interest rates will start to rise later this year. Consequently, the US 10-year treasury yield rose to 2% at the time of writing.
AUD/USD Technical Levels
The immediate resistance is seen at 0.8116 (10-DMA), above which gains could be extended to 0.8156 (Jan. 6 high). Meanwhile, support is seen at 0.8082 (5-DMA) and 0.8065 (Jan. 6 low) levels.
The pair now trades 0.35% higher for the day at 0.8104 levels, compared to the previous session’s close at 0.8072 levels. The Aussie gained strength earlier today after the Australian Bureau of Statistics said that building approvals increased by 7.5% in November, beating the expectation of a 3.5% decline. However, the gains have been capped as the demand for USD remained underpinned after the Fed minutes released yesterday did little to alter the expectations that U.S. interest rates will start to rise later this year. Consequently, the US 10-year treasury yield rose to 2% at the time of writing.
AUD/USD Technical Levels
The immediate resistance is seen at 0.8116 (10-DMA), above which gains could be extended to 0.8156 (Jan. 6 high). Meanwhile, support is seen at 0.8082 (5-DMA) and 0.8065 (Jan. 6 low) levels.