AUD/USD extends profit taking slide, drops below 0.80 handle post US data
|Having refreshed 26-month tops, the AUD/USD pair lost the upside momentum and dipped into negative territory following the US economic releases.
Currently hovering around the key 0.8000 psychological mark, the pair ran through some fresh offers after the US durable goods orders recorded a stellar growth in June. This coupled with a larger-than-expected drop in the US goods trade balance provided an additional boost to the greenback and collaborated to the pair's retracement from the highest level since May 2015.
Earlier during the European trading session, the pair stalled its bullish trajectory near the 0.8065 region and witnessed some profit-taking. A modest pickup in the US Treasury bond yields, which supported a goodish US Dollar recovery prompted traders to take some profits off higher-yielding currencies - like the Aussie, especially after the post-FOMC upsurge.
It is worth reporting that the pair had rallied around 190-pips from Wednesday's softer Australian CPI-led swing lows below the 0.7900 handle to fresh 26-month highs beyond mid-0.8000s touched during Asian session on Thursday.
• AUD: Rally to extend further? – Westpac
Technical levels to watch
A follow through retracement now seems to find support near 0.7970 horizontal level, below which the corrective slide could get extended back towards 0.7915-10 support area. On the upside, the 0.8050 region might now act as an immediate resistance, which if cleared would pave way for continuation of the pair's well established bullish trend.
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