AUD/USD testing key resistance near 0.7930/35 en route 0.7990

Dhwani Mehta FXStreet

The AUD/USD pair extends its range-trade into a second day today, as the bulls continue its consolidative mode near two-year highs of 0.7990 reached last Thursday.

AUD/USD eyes on Aus CPI, Fed

The Aussie resumes its bullish momentum on Monday, after a temporary reversal seen last Friday, as upbeat Aus fundamentals and broad USD softness continue to lend support to the bulls.

Markets continue to cheer stronger-than expected Aus full-time employment numbers, while the US political turmoil amid renewed concerns over Trump’s ability to deliver on his promised on tax reform plans, continue to keep the greenback under pressure against its major rivals.

Moreover, the recent rebound in gold and copper prices also keeps the sentiment underpinned around the resource-linked AUD. Gold prices booked its biggest weekly gain in two months on softening US rate-hike outlook and US political uncertainty.

Later today, the spot will take cues from the broader market sentiment and US macro releases, while the main risk event for AUD/USD remains the Australian CPI figures and FOMC policy decision due out this Wednesday.

AUD/USD Levels to watch

At 0.7932, the pair finds the immediate resistance at 0.7987 (2-yr highs) above which gains could be extended to the next hurdle located 0.8000 (round figure) and 0.8050 (psychological levels). On the flip side, the immediate support is located at 0.7900 (round figure). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7883 (classic S3) and below that 0.7839 (Jul 14 top).

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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