AUD/USD extends the breakout of 0.7400

The Aussie dollar is trading in line with the rest of the risk-associated assets, pushing AUD/USD further north of the 0.7400 barrier.

AUD/USD boosted by sentiment

The greenback remains on the defensive today following a renewed sentiment towards the riskier assets, all after the ‘Leave’ vote at the EU-UK Referendum (Thursday) has retaken the lead according to polls released over the weekend.

Spot is thus rebounding from last week’s troughs in the 0.7280 area, currently navigating multi-day peaks in the 0.7440/50 band.

Regarding positioning, speculative net shorts in AUD have been reduced by more than half during the week ended on June 14 from the previous week, according to the latest report by CFTC.

AUD/USD levels to watch

At the moment the pair is advancing 0.61% at 0.7440 and a break above 0.7508 (high Jun.9) would aim for 0.7597 (23.6% Fibo of the Jan-Apr up move) and finally 0.7836 (2016 high Apr.21). On the other hand, the next support aligns at 0.7410 (100-day sma) followed by 0.7338 (20-day sma) and then 0.7283 (low Jun.16).