AUD/USD off session low, recovery capped at 50-DMA
|Having touched a four-week low during early Asian session on Monday, the AUD/USD pair has managed to recover all of its lost ground and is now hovering near 50-day SMA around mid-0.7500s.
Increasing Fed rate-hike bets after hawkish comments from the Fed Vice Chairman Stanley Fischer and Yellen's speech at Jackson Hole symposium helped the greenback to build on to Friday's strong bullish momentum.
On Monday, the pair extended its weakness and broke below 50-day SMA immediate support before finding some support near 38.2% Fibonacci retracement level of 0.7145-0.7756 up-swing. Further recovery, however, remains confined at 50-day SMA support break-point turned immediate resistance.
Later during NA trading session, Core PCE price index, personal income and spending data from the US would provide fresh impetus and provide short-term trading opportunity ahead of this week's key event risk, non-farm payrolls (NFP) release on Friday.
Technical levels to watch
Sustained recovery back above 50-day SMA resistance near 0.7560 region should boost the pair immediately towards 0.7585 before making an attempt to move back above 0.7600 handle to retest 0.7610-15 horizontal resistance.
On the flip side, weakness below session low support near 0.7525-20 region is likely to find support at 100-day SMA around 0.7500 region. A convincing break below 0.7500 psychological mark is likely to increase the pair vulnerability to continue drifting lower and aim towards testing the very important 200-day SMA support near 0.7380-75 region in the near-term.
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