AUD/USD fades a spike to 0.7305 – 3-week tops

Bears continue to guard the fencing above the 0.7300 level.
Supported on USD weakness, S&P’s outlook upgrade ahead of US data.

Dhwani Mehta FXStreet

The AUD/USD pair broke its upside consolidation phase in early Europe and peeped briefly above the 0.73 handle before meeting fresh supply to now revert towards the 0.7285 region.

AUD/USD ignores higher copper prices?

Despite the ongoing weakness in the US dollar and the rally in copper prices, the Aussie lacks further upside momentum, as the US-China trade rhetoric appears to keep the investors slightly unnerved.

The spot, however, manages to hold near three-week tops of 0.7304, as the sentiment remains underpinned by S&P’s upgrade revision to the Australian outlook. S&P raised Australia's outlook to stable from negative

Meanwhile, the US dollar hovers near two-month lows of 93.82 versus its main peers, as the risk-on sentiment returned to markets following record highs scored on the Wall Street indices.

Looking ahead, in absence of first-tier macro news from the US, the sentiment on the Wall Street and USD dynamics will continue to influence the pair.

AUD/USD Technical Levels

FXStreet’s Analyst Omkar Godbole noted the key technical levels for trading the Aussie today.

“Resistance: 0.7303 (trendline hurdle + 50-day MA), 0.7382 (Aug. 21 high), 0.7395 (100-day MA).

Support: 0.7248 (5-day MA), 0.72 (psychological support), 0.7189 (200-hour MA).”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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