AUD/USD: Bulls rescued by gold’s rally, bounces-off 0.7400

The offered tone behind the AUD weakened a bit in the early European trading, as the AUD/USD pair finds support from the gold-price rally amid widespread risk-aversion.

AUD/USD supported ahead of 0.74 handle

Currently, the AUD/USD pair trades -0.38% lower at 0.7434, retreating from session lows struck at 0.7408 in early Asia. The Aussie’s recovery from near 0.74 barrier found extra legs after the yellow metal headed back towards over 2-year peaks, and thus, lifting the bids for the resource-linked AUD.

Earlier on the day, the AUD/USD pair dropped sharply following a renewed risk-off wave witnessed in Asia. The cable slumped to fresh 31-year lows and triggered risk-aversion across the financial markets, weighing heavily on the higher-yielding/ risky assets such as oil, equities, AUD etc.

Meanwhile, markets the Europe open for fresh cues on the risk conditions, which will have major impact on the Aussie ahead of the FOMC minutes due for release later in the NA session.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7476 (5-DMA) above which gains could be extended to the next hurdle located at 0.7514 (daily R1). On the flip side, the immediate support located at 0.7408/00 (Daily low/ round number). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7353 (50-DMA).