AUD/USD faces rejection near 0.7600 handle, Fedspeaks and US ISM PMI in focus

Haresh Menghani FXStreet

• Quickly retreats around 30-pips from session tops.
• Risk aversion favors USD against AUD.
• Near-term outlook remains bearish.

The AUD/USD pair faded early European session bullish spike to the 0.7600 neighborhood and has now surrendered a major part of its daily gains.

The pair had a good two-way move on Friday and remained within striking distance of last week's multi-month lows. The latest leg of sharp retracement, of around 30-35 pips from session tops, could be solely attributed to a modest pickup in the US Dollar demand.

With investors still digesting the latest US tax bill chaos, global flight to safety was seen driving flows away from perceived riskier currencies and dragged the pair back to the 0.7570 region.

Meanwhile, a sharp retracement in the US Treasury bond yields did little to lend any support to the higher-yielding currency, albeit a mildly positive trading sentiment around commodity space helped limit deeper losses, at least for the time being.

Next in focus would be the release of US ISM manufacturing PMI, which along with Fedspeaks would be looked upon for some fresh trading opportunities on the last trading day of the week.

Technical outlook

Valeria Bednarik, American Chief Analyst at FXStreet writes: "The short-term picture continues to favor the downside, as the price is unable to regain ground above a bearish 20 SMA, while technical indicators remain within bearish territory, albeit lacking clear directional strength."

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

GBP/USD trades below 1.3500 on firmer USD, ahead of UK GDP

The GBP/USD pair trades with a negative bias for the second consecutive day and trades below the 1.3500 psychological mark during the Asian session amid modest US Dollar strength. The downside potential, however, seems limited as traders might opt to wait for the UK macro data dump, including the Q2 GDP report, before placing directional bets.

EUR/USD advances as US Dollar weakens amid cooling Inflation

EUR/USD halts its three-day losing streak, trading around 1.1530 during the Asian hours. The currency pair gains ground as the US Dollar faces challenges following the release of July's Consumer Price Index report. Inflation in the US moderated across a broad range of goods and services, which significantly cooled expectations for an aggressive Federal Reserve rate hike in September.

Gold clings to 100-day SMA, with upside risks intact

Gold is reverting to the $4,400 level in Asia on Thursday after facing rejection at $4,450 or fresh ten-week highs earlier in the session. Attention now turns to the US Producer Price Index data for more signs of cooling inflation, particularly after a mild US Consumer Price Index report.

Ripple and Stellar outlook: Stay under pressure as cautious sentiment builds

Ripple (XRP) and Stellar (XLM) remain under pressure, with both altcoins correcting slightly so far this week. XRP nears the key $1.00 support zone on Thursday, while XLM trades below critical technical levels. Mixed derivatives and on-chain metrics suggest cautious sentiment, leaving both tokens vulnerable to further downside while offering hope for a potential recovery.

UK GDP expected to show moderate Q2 growth

The United Kingdom’s Office for National Statistics will release the preliminary estimate of the second-quarter Gross Domestic Product on Thursday. Market analysts anticipate a 0.4% growth in the three months to June, after a modest 0.6% advance in the first quarter of 2026. Annual progress is expected at 1.1%, up from the 0.9% posted in March.

Why is Crude Oil priced for a reopening the ships haven't made?

Fourteen vessels crossed the Strait of Hormuz on Tuesday. Before the war, the count ran near 120 a day. In the sessions since the waterway was publicly declared open, Brent has drifted back to $87 and West Texas Intermediate (WTI) to $81, both a little lower again on Wednesday, with daily momentum on each unwound from the top of its range in late July to the low twenties now.