AUD/USD above 0.75, ignores bearish iron ore forecasts

The AUD/USD pair trades on the front foot above 0.75 handle as Aussie traders turn a blind eye towards bearish iron ore forecasts published by Australian government.

Trades above 50% Fibo

The bird is trading above 0.7490 (50% Fibo of 0.7835-0.7145). Aussie strengthened in line with the minor uptick seen in the oil prices. The pair jumped from the low of 0.7477 to a high of 0.7510.

The pair is now struggling to extend gains above 0.75 handle, given the government has revised 2016 and 2017 iron ore price forecasts lower.

Ahead in the day, the pair is likely to take cues from oil prices and broader market sentiment. In the US session, the pair could be influenced by the US non-farm payrolls release.

AUD/USD Technical Levels

The immediate hurdle is noted at 0.7529 (Wednesday’s high), above which prices could target 0.7545 (July 4 high). A violation there could yield 0.7571 (61.8% of 0.7835-0.7145). On the other hand, a breakdown of support at 0.75 would open doors for a slide to 0.7453 (100-DMA) and 0.7408 (July 6 low).