AUD/USD rebounds post-Tokyo on renewed optimism

A major turnaround in the risk conditions this Monday, set an upbeat tone around the AUD/USD ahead of a busy week AUD traders, with immediate focus now on Tuesday’s RBA minutes release.

AUD/USD bounces off lows ahead of 0.74 handle

Currently, the AUD/USD pair advances +0.66% at fresh three-day highs of 0.7444, having found strong support near 0.7408 region. The Aussie takes advantage of the risk-on trades persisting in the markets after the latest Brexit polls’ outcome swayed towards the Remain camp and therefore, eased Brexit fears to a great extent, as we remain just a few days away from the EU referendum scheduled this Thursday.

Moreover, rallying copper and oil prices also collaborated to the upside in the resource-linked Aussie, helping the bulls to extend the Asia gap up gains. While broad based US dollar sell-off also keeps the bids underpinned.

Nothing of note for the major today and therefore, attention shifts towards tomorrow’s RBA official Debelle’s speech and RBA May meeting minutes for fresh impetus on the Aussie.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7439/46 (June 16 & 15 high) above which gains could be extended to the next hurdle located at 0.7500 (round number). On the flip side, the immediate support located at 0.7408 (5-DMA/ daily low). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7380/79 (daily S3/50-DMA).