The AUD/USD pair edged lower at the start of a new trading week and eroded part of Friday's strong up-move back closer to 2-week tops.
Concerns over the US political uncertainty seemed to have eased bit and hence, a modest pickup in the US Dollar demand was seen weighing on the major through early European session on Monday.
• US Dollar flirting with tops near 93.50
Even the prevalent positive sentiment around commodity space, especially copper, failed to provide any fresh bullish impetus to the commodity-linked Australian Dollar.
The pair, however, has managed to hold its neck above the 0.7900 handle amid a mildly softer tone around the US Treasury bond yields, which tends to benefit higher-yielding currencies - like the Aussie.
Meanwhile, reemergence of fresh supply on every up-move clearly seems to suggest that the pair's near-term corrective slide might still be far from over.
It, however, remains to be seen if bears are able to regain control amid ongoing uncertainty over the US President Donald Trump’s pro-growth economic agenda and fading prospects of a third Fed rate hike action by the end of this year.
• US: White House drama overshadows Jackson Hole - ING
Technical levels to watch
A follow through weakness back below the 0.7900 handle, leading to a subsequent drop below 0.7880 horizontal support, is likely to accelerate the slide towards 0.7840 intermediate support en-route 0.7815-10 zone.
On the upside, 0.7940 level now seems to have emerged as immediate supply zone, which if cleared is likely to trigger a short-covering rally and lift the pair beyond 0.7965 intermediate resistance towards the key 0.80 psychological mark.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0650 after US data
EUR/USD retreats from session highs but manages to hold above 1.0650 in the early American session. Upbeat macroeconomic data releases from the US helps the US Dollar find a foothold and limits the pair's upside.
GBP/USD retreats toward 1.2450 on modest USD rebound
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold clings to strong daily gains above $2,380
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.