AUD/USD: bullish bias in risk-on markets and oil to $52 WTI

AUD/USD is currently consolidating around the 0.76 handle within a daily range of between 0.7553 and 0.7628.

AUD/USD is robust, despite the strength in the U.S. dollar this week that managed to continue on its northerly trajectory even though the nonfarm payrolls numbers were not as impressive as the markets had been expecting. However, markets continue to expect that the U.S. economy to roll over into 2017 on a positive note and will likely require an interest rate hike from the Fed as early as either next month or in December - this is keeping the greenback underpinned. A Trump inspired risk on environment is also supportive to the Aussie while the price of oil reached new highs overnight on the back of optimism for an output cut accord. Russia changed their tune today which was half of the rally in oil after Putin said that Russia was also ready to freeze or cut production.

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 1 hour chart, technical indicators have retreated from near overbought levels before turning flat within positive territory, while the 20 SMA is losing its upward strength below the current level and around 0.7600, a very close immediate support.

"In the 4 hours chart, the price is currently a few pips above a horizontal 200 EMA, while the 20 SMA is horizontal below it, both around the 0.7600 level. Technical indicators in this last time frame have lost upward strength after entering positive territory, presenting a neutral stance. The price needs now to extend beyond 0.7650 to anticipate some further gains for this Tuesday."