AUD/USD sits at 5-week highs, 0.79 in sight

FXStreet (Mumbai) - The Australian dollar extends its winning streak against the US counterpart for the fifth straight session in Asia, with AUD/USD heading close to fresh five week highs, largely on the back of Aussie strength after RBA Stevens preferred not to speak on the monetary policy stance ahead of May 5 RBA meeting which translated into positive sentiments for AUD traders.

AUD/USD extends a 5-day rally

Currently, the AUD/USD trades higher by 0.18% at fresh session highs of 0.7872, test fresh five–week highs reached at 0.7874 in the previous session. AUD/USD edged higher this session after RBA Stevens no commentary on the monetary policy today fuelled expectations of slim chances of change in the rate decision at its May 5 meeting which boosted the Australian dollar.

More so, the Aussie also received supported from softer US macro data released recently which continues to undermine the US dollar against its major competitors.

"The AUD is drifting higher as the influence of the softer USD broadens," analysts at ANZ noted. They expect Aussie's direction to be dictated by the tone of the Fed and the USD.

On the macro economic front, markets now focus on US consumers confidence data and HPI amid a data-light US calendar today . While US FOMC will be eagerly awaited.

AUD/USD Technical Levels

The pair has an immediate resistance at 0.7886 (March 26 High) levels, above which gains could be extended to 0.7907 (March 25 High)) levels. On the flip side, support is seen at 0.7860 (Today’s Low) levels from here it to 0.7800 levels.

USD/JPY supported at 119.00

The US dollar trades in a flat-lining versus its Japanese counterpart in the mid-Asian trades, keeping USD/JPY well above 119 handle, as traders continue to digest dismal Japanese retail sales numbers which tumbled at the fastest pace on record in March.
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NZD/USD consolidates above 0.76

The New Zealand dollar snapped a 2-day rally and slipped in red versus its American counterpart in the Asian session, taking NZD/USD closer towards 0.76 handle, mainly driven by profit-taking after the recent strength on broad USD weakness.
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