AUD/USD slipped below mid-0.74's on USD strength

Eren Sengezer FXStreet

After pushing to a session high at 0.7460 just before the NA session went underway, the AUD/USD pair came under pressure as the greenback gathered strength against its competitors following the upbeat macro data from the United States. At the moment, the pair is trading at 0.7440, down 0.20% on the day.

Following the first batch of the macro data from the United States, the US Dollar Index leaped to its highest level since last Friday at 97.42, pulling the pair away from its daily highs. The second estimate of the GDP growth increased to 1.2% in the first quarter of 2017 from 0.7%. More importantly, the report highlighted that the GDP growth was boosted by the higher consumer spending. Later in the session, the final reading of the University of Michigan Consumer Sentiment Index eased to 97.1 from 97.7 and missed the expectations of 97.5. However, the reading matched the December to May average and didn't trigger a USD sell-off.

The economic calendar won't be offering any other data as we approach the end of the week and the greenback's strength could remain as the sole driver of the pair's price action.

Technical levels to consider

With yesterday's heavy sell-off, the pair broke below its latest daily uptrend and the RSI on the daily graph eased below 50, both suggesting the continuation of technical pressure. The initial hurdle for the pair aligns at 0.7500 (psychological level) followed by 0.7560 (20-WMA) and 0.7610 (Apr. 17 high). On the downside, supports could be seen at 0.7420 (20-DMA), 0.7330 (May 9 low) and 0.7285 (Jan. 6 low).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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