AUD/USD recovers from 2-week lows, steadies below 0.74
|- Strong macroeconomic data helps the greenback stay strong on Thursday.
- US Dollar Index goes into a consolidation phase near 95.
- Australian trade surplus increases more than expected.
The AUD/USD pair broke below the 0.74 mark during the early trading hours of the day on Thursday mark as Asian traders reacted to the FOMC's monetary policy statement. After refreshing its lowest level since July 20 at 0.7355, the AUD/USD pair retraced some of its daily losses but lost its momentum before reaching the 0.74 handle. As of writing, the pair was down 0.35% on the day at 0.7380.
Earlier today, the data from Australia showed that the trade surplus rose to $1.9 billion from $725 million and beat the analysts' estimate of $900 million. However, a contraction in imports rather than higher exports seemed to be the primary reason behind the rising trade surplus and didn't allow the aussie to take advantage of the data.
In the second half of the day, the ISM NY's Business Conditions Index jumped to 75 in July from 55 in June and monthly factory orders in the U.S. expanded by 0.7% in June following May's 0.4% growth. The US Dollar Index, which tracks the greenback against a basket of six major rival currencies, preserved its bullish momentum with the help of the robust data and now looks to close the day near 95.
The macroeconomic docket in Australia will feature AiG Performance of Services Index and June retail sales. Nonetheless, investors are likely to stay on the sidelines ahead of the critical NFP report, which is due to be released at the beginning of the NA session on Friday.
Technical outlook
The initial support for the pair aligns at 0.7350 (daily low) ahead of 0.7315/10 (Jul. 29/Jul. 2 low) and 0.7240 (Dec. 19, 2016 low). On the upside, resistances align at 0.7400 (20-DMA), 0.7435 (50-DMA) and 0.7500 (psychological level).
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