AUD/USD extends Aus Capex-led gains above 0.7200

The bid tone around the AUD keeps growing bigger as we progress towards late-Asian trades, with AUD/USD trading firmly above 0.72 handle as markets continue to cheer optimistic Australian capex estimates.

AUD/USD: Looks to test 10-DMA at 0.7232

Currently, the AUD/USD pair trades +0.17% higher at 0.7211, hovering close to session highs printed at 0.7216 in the last hour. The Aussie staged a solid rebound from 0.7165 levels and now recovers nearly 75 pips as upbeat second estimates of Aus capex for 2016/17 continues to underpin the sentiment around the AUD.

More so, a slump in the US dollar across the board also collaborates to the renewed strength in the AUD/USD pair. While a slight improvement in the risk conditions also supports the higher-yielding currency Aussie.

In the day ahead, the major will track the oil-price action as well as the sentiment on the global equities ahead of the US dataflow and Fed speaks, with the US durable goods orders expected to hog the limelight.

AUD/USD Levels to watch

The pair finds the immediate resistance at 0.7232/61 (10 &200-DMA) above which gains could be extended to the next hurdle located at 0.7295/0.7300 (20-DMA/ round number). On the flip side, the immediate support located at 0.7105 (April 29 & Mar 1 Low). Selling pressure is likely to intensify below the last, dragging the Aussie 0.7065 (Feb 14 Low).