AUD/USD clocks 2-1/2 week high, jumps above 0.73

AUD/USD clocked a 2-1/2 week high of 0.7303 in Asia on broad based USD sell-off.

Runs into 38.2% Fib

The psychological level of 0.73 is also the 38.2% Fib retracement level of the drop from the Dec 14 high of 0.7525 to Dec 23 low of 0.7160.

The gains see this Thursday morning are largely due to the Fed minutes released overnight which carried a dovish tone.

Aussie side of the story could come into play following the release of China services PMI data. Later in the day, the monthly US ADP private sector employment report could influence the overall demand for the US dollars.

AUD/USD Technical Levels

The spot was last seen trading around 0.7292. A break above 0.73 (zero figure + 38.2% fib of Dec 14 high - Dec 23 low) would open the door to 0.7342 (50% fib) and 0.7385 (61.8% fib). On the other hand, a breakdown of support at 0.7273 (session low) could yield a re-test of 0.7246 (23.6% fib), under which the losses could be extended to 0.72 (zero figure).