AUD/USD erases most losses and heads for a re-test of 0.8000 levels, as the bull find fresh impetus from the Australian PPI data and a broadly subdued US dollar.
AUD/USD regains 5-DMA at 0.7962
The Aussie extends its overnight consolidative mode into Asia, although attempts a minor bounce from fresh daily lows of 0.7953 struck last hour. The bears take a breather and consolidate the recent retreat from multi-month tops of 0.8066 before the next push higher, should the US GDP report disappoint markets and add to the post-Fed downbeat tone witnessed around the US dollar.
The spot derives support from slightly upbeat Australian PPI release, while higher copper prices also aides the recovery in the resource-linked AUD. Australia Producer Price Index (YoY) rose from previous 1.3% to 1.7% in 2Q
Focus now remains on the US Q2 advance GDP data due later in the NA session for fresh take on the USD price-action, especially after the durable goods data came in much stronger than expectations.
AUD/USD Levels to watch
Jim Langlands at FXCharts explains, “If we do head down, then below 0.7955 would find bids at 0.7930 and at 0.7890/00 ahead of the strong area at 0.7875. On the other hand, the longer term charts still hint that buying dips remains the medium term plan, and if we head back above 0.8000, the 200 WMA will again provide a hurdle ahead of the 0.8065 high. In the meantime, we may hang around the 100 MMA (0.7975) today, although a monthly close above it (Monday) would reinforce the view of heading higher, and above 0.8065 there is little to stop the Aud from heading to 0.8160.”
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