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.

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).”

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