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AUD/USD revisits daily highs, lifted on upbeat fundamentals

FXStreet (Mumbai) - The AUD/USD pair bounced-off 0.73 barrier and extends higher in mid-Asia, as markets continue to digest the last set of macro releases from Australia, while higher gold prices also boosted the resource-linked Aussie.

AUD/USD struggles to break through daily R1

Currently, the AUD/USD pair trades 0.62% higher at 0.7346, retesting daily highs posted at 0.7351 in last hours. 0.74 handle. The Aussie found renewed strength at the hourly 100-SMA support located near 0.73 handle and regained the upside momentum as markets cheer the steady unemployment numbers from Australia, in line with the RBA policymakers expectations. The decline in the participation rate from 65% to 64.9% helped keep the unemployment rate at 6.2% last month.

Moreover, improving inflation expectations in the country along with rising oil and gold prices also lifted the sentiment around the Aussie. Consumer prices in Australia are predicted to jump 3.5% y/y on year in October, the latest forecast from the Melbourne Institute showed. That's up sharply from 3.2% in September.

Also, a turnaround in the risk conditions on Thursday also helped increase the demand for higher yielding currencies. Meanwhile, the pair will be influenced by the broader market sentiment in the day ahead with US CPI data closely eyed.

AUD/USD Levels to watch

The pair has an immediate resistance at 0.7385-7398 (Oct 12 High & Daily R2) levels, above which gains could be extended to 0.7425/29 (Aug 10 & Aug 4 Highs) levels. On the flip side, support is seen at 0.7304/7300 (hourly 100-SMA & round number) levels from here it to 0.7283 (100-DMA).

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