AUD/USD bounces in tandem with S&P 500 futures, eyes 0.7150

• AUD/USD tracks the S&P 500 futures rebound despite mixed markets.
• Broad US dollar dive helps aussie to close the bearish opening gap.
• Coronavirus woes and dollar weakness to play out ahead of US data.

AUD/USD is extending its bounce from near 0.7090 region beyond the 0.7100 level, as the bulls cheer the latest uptick in the S&P 500 futures combined with the relentless selling in the US dollar across its main peers.

At the time of writing, the spot gains 0.50% to trade at 0.7138, having closed the bearish opening gap. The S&P 500 futures jump 0.53% to trade above 3220 while the US dollar index is at the lowest level since September 2018 near the 94 handle.

Also, adding to the bullish move in the spot is the ongoing rally in gold, as the yellow metal surged to a new record high above $1930 amid tumbling US Treasury yields, as the unprecedented amount of the US monetary and fiscal stimulus make non-yielding gold more attractive.

Meanwhile, upbeat comments on the AUD exchange rate level by the Reserve Bank of Australia (RBA) Assistant Governor Kent also collaborate with the renewed strength in the major. Kent said that he is not overly concerned about level of AUD and that it is not far from fundamentals.

Looking ahead, the performance on the global stocks and US dollar price action will continue to remain the main market driver amid growing coronavirus cases globally and dimming outlook on the US economic recovery. The focus also remains on the US Durable Good Orders data due later today in the NA session.

AUD/USD technical levels

The further upside will likely face stiff hurdle 0.7150 (psychological level). The next resistance is aligned at 0.7182 (15-month high). On the flip side, the immediate support is seen at 0.7088 (daily low), below which the 20-DMA at 0.7010 could be tested.

AUD/USD additional levels