AUD/USD surges to 0.7400 ahead of US GDP and Confidence index

Extending its recovery momentum from the vicinity of 0.7300 level, the AUD/USD pair has now surged to 0.7400 handle and is now inching closer to the very important 100-day SMA region ahead of macro-economic releases from the US.

Economic data slated for release from the US includes - final GDP print for the first quarter of 2016 and the Conference Board's Consumer Confidence for June.

Prior to Tuesday's up-move, the pair had erased all of its gains recorded in the previous two weeks as the Brexit referendum led to a global flight to safety and move away from commodities and commodity-linked currencies - like the Australian Dollar. However, receding Brexit fears on Tuesday is turning out to be supportive for global risk-on rally and benefitting high-yielding currencies like the Aussie. 

The US Dollar on Tuesday is suffering from a fresh wave of global risk-on trade, assisting the pair to recover swiftly and head back towards 100-day SMA historic strong resistance. A follow through buying interest above 100-day SMA might now trigger a fresh leg of short-covering move that would help the pair to build on to its Tuesday's bullish momentum.

Technical levels to watch

From current levels, 100-day SMA near 0.7430 region seems to act as immediate resistance. A convincing strength above this resistance seems to lift the pair back towards 0.7500 barrier, which if conquered should pave way for a further up-move, back towards retesting recent daily closing highs resistance around 0.7600 round figure mark.

Alternatively, reversal from current resistance level and a subsequent drop back below 0.7360-55 horizontal support now seems to drag the pair even below 0.7300 round figure mark, towards testing the very important 200-day SMA support near 0.7280 region. A follow through selling pressure would open room for continuation of the pair's downward trajectory in the near-term.