AUD/USD corrects from 9-week tops, but stays well above 5-DMA

The AUD/USD pair extended its overnight rally and scored fresh nine-week highs at 0.7569 at Asia open, before meeting fresh supply to now meander near daily troughs of 0.7540.

AUD/USD tracks USD price-action

Currently, the AUD/USD pair drops -0.30% to 0.7544, eyeing a test of next 5-DMA support located at 0.7519 in the day ahead. The Aussie is seen back on the offers so far this session, reversing a minor-portion of yesterday’s extensive upsurge, triggered by a massive slump in the US dollar, following Trumps comments citing caution on a stronger USD, which squashed hopes over his fiscal spending plans and sent the US treasury yields down in the dumps.

The latest upmove in the AUD/USD pair can be mainly attributed to a corrective rally witnessed in the greenback versus its major peers, while Fed’s Williams hawkish tone during his speech last hours, also weighed down on the major.

Later today, the major will get influenced by the much-awaited US inflation figures, while Fed Chair Yellen and Fed member Kashkari’s speech will be also heard.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7569 (9-week tops) above which gains could be extended to the next hurdle located 0.7600 (round figure) and 0.7650 (psychological levels). On the flip side, the immediate support located 0.7419 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7505 (200-DMA) and below that 0.7484 (100-DMA).