AUD/USD reverses sharply and eyes last week highs

• Stronger Aussie pushed the pair to 0.7800.
• Key data ahead: Australian Jobs reports due on Thursday. 

The Australian Dollars reversed sharply against the US dollar. Earlier today bottomed at 0.7743, the lowest level in six days and then started to recover. Then accelerated to the upside and recently reached at 0.7796, the highest since Friday. 

AUD/USD rose from 6-day lows to 5-day highs in a few hours, making a strong reversal. The upside was capped by the 0.7800 area. The mentioned zone is being tested and if the Aussie breaks higher, last week highs at 0.7809 would be exposed. 

The recent move higher was boosted by a stronger AUD and also by a weak US Dollar. US Dollar Index futures peaked at 89.45 but then dropped to 89.12. At the same time, gold climbed above $1,350/oz, adding to the positive tone around the Aussie. AUD/NZD extended gains on top of 1.0600, to the highest since April 3. 

What’s next?

During the second half of the US session, the Beige Book about the state of the US economy will be released. Usually, it does not have a significant impact on markets. The key event ahead is the Australian Jobs Report, due on Thursday at 01:30 GMT. 

Levels to watch 

To the upside, resistance levels might be located at 0.7805/10 (last week high), 0.7835/40 and 0.7875. On the flip side, support could be seen at 0.7755, 0.7735 (Apr 12 low) and 0.7695.