AUD/USD – Bulls lack will to take it above 0.7500

The bullish momentum in the AUD/USD pair appears to have run out of steam after nearing 0.75 handle, although prices continue to trade above 0.7450 (38.2% of 0.6827-0.7835).

Iron ore capping gains in AUD?

Iron ore prices weakened today to trade just above $50 per tonne. Major investment banks are once again betting on a fresh sell-off in Iron ore given the Chinese steel output is expected to drop further in the coming months.

The bearish calls on Iron ore could be capping gains in the AUD. Moreover, Reserve Bank of Australia (RBA) minutes released earlier today warned about the negative impact of AUD strength, but was met with lukewarm reaction. Furthermore, Brexit fears have waned as well.

Ahead in the day, oil prices and Yellen testimony could influence the pair.

AUD/USD Technical Levels

The spot currently trades around 0.7464. The Asian session high stands at 0.7487 and is likely to act as a immediate resistance. A break higher would expose 0.7504 (June 9 high), which is followed by a hurdle at 0.7548 (Apr 27 low). On the other hand, a break below 0.7450 (38.2% of 0.6827-0.7835) would open doors for a drop to 0.7408 (100-DMA) and 0.7331 (50% of 0.6827-0.7835).