AUD/USD turns around the earlier drop to climb to 0.7460

The low today hit 0.7411 in Asian trading, which marked the lowest level for the pair since December, but things are quickly changing now in European trading as risk sentiment is also lookin more positive for the time being.

European equities are rallying while US futures are holding modest gains now – S&P 500 futures up 0.3% – as we see a calmer tone in the bond market. 10-year Treasury yields are up by 5 bps to 1.34% and that is helping with the risk mood.

China cutting banks' RRR for the first time since April last year also helps with that.

Going back to AUD/USD, the pair is seeing a mild bounce back above the 23.6 retracement level of the recent swing lower this week @ 0.7544.

There is some minor resistance closer to 0.7482 next but the big one to watch in the near-term will be the key hourly moving averages @ 0.7492-96 currently. Keep below that and sellers stay in control but break above, and buyers will be in near-term control instead.



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