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FxWirePro: AUD/USD snaps two-day losses, positive risk sentiment amid renewed China optimism buoys Aussie

AUD/USD chart - Trading View 

AUD/USD has snapped a two-day downside and was trading 0.24% higher on the day at 0.7484 at around 09:30 GMT.

The pair hit session highs at 0.7505 (above 5-DMA at 0.7479) before paring some gains.

Markets remains risk-on amid renewed China optimism, concerning the property sector. 

On the other side, the US dollar remains subdued following lower US Treasury yields and ebbing inflation fears.

Bullish bias in the pair intact. Pullbacks seen on account of overbought conditions are likely to be shallow.

Focus remains on the Australian CPI and US GDP this week for further impetus. Upbeat US GDP numbers could provide extra support to the greenback, weighing on the pair. 

Major Support Levels: 

S1: 0.7450 (38.2% Fib)

S2: 0.7412 (110-EMA)

S3: 0.7386 (21-EMA)

Major Resistance Levels: 

R1: 0.75

R2: 0.7543 (Upper BB)

R3: 0.7560 (200-DMA)

Summary: AUD/USD has ignored Gravestone Doji formation on the previous session's candle. Close above 5-DMA will see resumption of upside. Scope for test of 200-DMA at 0.7560. 

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