AUD/USD gains traction above the 0.6800 area on weaker USD

AUD/USD gains traction and reclaims the 0.6800 mark on Thursday.
Federal Reserve (Fed) hiked the interest rate by 25 basis points (bps) to a target range of 5.25%–5.5%.
Market participants will focus on the US Q2 GDP, Australian Retail Sales MoM.

Lallalit Srijandorn FXStreet

The AUD/USD pair attracts some buyers and surges above the 0.6800 area during the Asian session on Thursday. The prevalent US Dollar selling bias supports the uptick in AUD/USD. The major pair currently trades around 0.6807, gaining 0.75% for the day.

On Thursday, the Australian Bureau of Statistics showed that the Import Price Index QoQ in the second quarter dropped 0.8%, against the market consensus of a 7.3% decline and a 4.2% drop in the previous reading. Meanwhile, the Export Price Index fell 8.5%, worse than expected, with a 7.8% rise and a 1.6% increase in the first quarter.

The softer Australian data on Wednesday suggests reasons for the Reserve Bank of Australia (RBA) to pause the additional rate hikes. Earlier this week, the Australian Bureau of Statistics (ABS) reported that the country's Consumer Price Index (CPI) rose 0.8% in the second quarter of 2023, compared to a 1.4% increase in the first quarter and the market consensus of 1.0% growth.

In the meantime, the fear of the economic slowdown in China might be a headwind for the China-proxy Aussie. On Tuesday, Chinese news agency Xinhua reported that Chinese policymakers would take up economic policy adjustments, strengthening confidence and mitigating risks. However, concern is high over whether China will deliver on its policy pledges.

Across the pond, the Federal Open Market Committee (FOMC) hiked its interest rate by 25 basis points (bps) to a target range of 5.25%–5.5%. Fed Chairman Jerome Powell stated following the rate decision that the FOMC will assess the totality of incoming data, along with its implications for economic activity and inflation. He added that it's possible to raise the Fed funds rate again at the September meeting if the data warrants it.

Market participants will digest the FOMC statement and shift their attention to the economic data. Later in the day, the US Initial Jobless Claims, Durable Good Orders for June, Advanced Gross Domestic Product (GDP) QoQ, and Core Personal Consumption Expenditure (PCE) Price Index MoM will be due. The Retail Sales MoM and the Producer Price Index (PPI) will be released on the Australian docket on Friday.

AUD/USD

Overview
Today last price	0.6808
Today Daily Change	0.0050
Today Daily Change %	0.74
Today daily open	0.6758

Trends
Daily SMA20	0.6735
Daily SMA50	0.6697
Daily SMA100	0.6691
Daily SMA200	0.6725

Levels
Previous Daily High	0.6794
Previous Daily Low	0.673
Previous Weekly High	0.6854
Previous Weekly Low	0.6722
Previous Monthly High	0.69
Previous Monthly Low	0.6484
Daily Fibonacci 38.2%	0.6755
Daily Fibonacci 61.8%	0.677
Daily Pivot Point S1	0.6728
Daily Pivot Point S2	0.6697
Daily Pivot Point S3	0.6664
Daily Pivot Point R1	0.6791
Daily Pivot Point R2	0.6824
Daily Pivot Point R3	0.6854

Author

Lallalit Srijandorn

FXStreet

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

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