AUD/USD flat on the day, awaiting next catalyst
|Following two straight daily gains, the AUD/USD is finding it hard to set a near-term direction as the pair is staying in a tight 30 pip channel on Thursday. As of writing, the pair is at 0.7670 where it closed the previous day.
After another failed attempt above 100, the greenback – measured by the US Dollar Index – dropped back to 99.90 area, which has been a comfort zone for the index in the past two days. Mixed macro data from the United States couldn't help the index extend its upward momentum either. Although the third GDP estimate in the U.S. improved to 2.1% from 1.9% for the fourth quarter of 2016, the Bureau of Economic Analysis noted that the general picture of economic growth remains largely the same.
Furthermore, after a strong start to the week, copper prices remain flat since yesterday, not providing any directional clues either. Later in the NA session, markets will look for a fresh catalyst on statements from Dallas Fed's R.Kaplan (voter, hawkish) and San Francisco Fed's J.Williams (2018 voter, hawkish). However, the pair could remain flat for the remainder of the day as the participants wait for the Private Sector Credit figures from Australia.
Commodities: Buoyant sentiment – ANZ
RBA monetary policy preview – NAB
Technical outlook
With a break below 0.7600 (psychological level) bearish momentum could extend towards 0.7555 (Mar. 15 low) and 0.7525 (100-DMA). On the upside, 0.7680 (daily high) could be the first hurdle followed by 0.7750 (Mar. 21 high) and 0.7800 (psychological level).
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