AUD/USD bounces above 0.7680 on RBA Stevens

FXStreet (Mumbai) – AUD/USD extended overnight gains and jumped to fresh highs in the mid-Asian session, after Reserve Bank of Australia (RBA) Governor Stevens pro-AID comments pushed it higher against the greenback.

AUD/USD eyes 0.77 barrier

Currently, the AUD/USD trades higher by 0.35% at 0.7677, retreating from fresh session highs at 0.7686 posted some minutes ago. The AUD/USD pair snapped losses from the US session and gradually advanced amid a broad USD weakness. Further, the gains in the Aussie were accelerated after RBA Governor said in his speech at the American Chamber of Commerce that decline in the exchange rate was helping the economy rebalance, but refrained from saying that a lower rate was still desired.

Stevens noted, “The decline in the exchange rate is assisting the transition (as it assisted in absorbing the earlier phase of the mining boom). But we have always said we cannot hope to fine-tune this transition, however much we may wish otherwise,”

Stevens also added that Australia does not have a budget crisis, and that he does not think the low level of interest rates is holding back the economy.

In the day, the US dollar is likely to remain the key driver influencing AUD/USD, while markets awaits speeches from Fed officials Lockhart and Evans later in the US session.

AUD/USD Technical Levels

The pair has an immediate resistance at 0.7700 levels, above which gains could be extended to 0.7713 (20-DMA) levels. On the flip side, support is seen at 0.7654 (10-DMA) levels from here it to 0.7600 levels.

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