AUD/USD advances beyond 0.9000

FXStreet (Edinburgh) - The Aussie dollar is now extending its bounce off lows near 0.8970 against the greenback, pushing the AUD/USD above the 0.9000 psychological barrier.

AUD/USD range dominates

February peaks beyond 0.9080 continues to cap any bull attempts in the last sessions, as well as the area around 0.8930 seems to be acting as a good support. Data wise in Oz, Construction Work Done fell 1.0% during the fourth quarter although the market paid little attention to the release; more relevant however will be tomorrow’s Capex figures, where consensus expects a decline of 1.0% in Q4. “Although we retain a constructive tone on the AUD-USD (on the back of a vulnerable broad dollar), expect any further unraveling of sentiment to weigh on the pair in the near term, with the 55-day MA at around 0.8911”, argued Emmanuel Ng, Strategist at OCBC Bank.

AUD/USD levels to watch

The pair is now up 0.06% at 0.9018 with the next resistance at 0.9050 (high Feb.24) followed by 0.9081 (high Feb.18) and then 0.9087 (2014 high Jan.13). On the flip side, a break below 0.8938 (low Feb.24) would expose 0.8928 (low Feb.13) and then 0.8907 (low Feb.10).