AUD/USD traded with modest losses, holds above mid-0.6700s

Concerns over US-China trade disputes exert some downward pressure on Thursday.
The USD fails to preserve FOMC minutes-led up-move and helped limit the downside.
Traders eye US PMIs for some impetus ahead of Powell’s scheduled speech on Friday.

Haresh Menghani FXStreet

The AUD/USD pair traded with a mild negative bias through the early European session on Thursday, albeit has managed to rebound around 15-pips from daily lows.

The pair continued with its struggle to move back above the 0.6800 handle on Wednesday and started losing intraday positive momentum after minutes of the July FOMC meeting tempered expectations of aggressive rate cuts, which provided a minor lift to the US Dollar.

Traders take cues from the USD price dynamics

This coupled with persistent concerns over US-China trade disputes held investors from buying the China-proxy Australian Dollar and further collaborated towards capping gains, rather exerted some fresh downward pressure during the Asian session on Thursday.

Meanwhile, the greenback failed to capitalize on its up-move and witnessed some fresh selling in the last hour and turned out to be one of the key factors limiting further downside, helping the pair to find some support ahead of mid-0.6700s - or weekly lows.

Moreover, investors also seemed reluctant to place any aggressive bets and preferred to wait on the sidelines ahead of the Fed Chair Jerome Powell's scheduled speech at Jackson Hole on Friday, which might further lead to a subdued/range-bound price action.

Thursday's US economic docket - featuring the release of flash manufacturing/services PMI - though is unlikely to be a game-changer, will be looked upon for some short-term trading opportunities later during the early North-American session on Thursday.

Technical levels to watch

AUD/USD

Overview
Today last price	0.6772
Today Daily Change	-0.0009
Today Daily Change %	-0.13
Today daily open	0.6781

Trends
Daily SMA20	0.6806
Daily SMA50	0.6907
Daily SMA100	0.696
Daily SMA200	0.7054

Levels
Previous Daily High	0.68
Previous Daily Low	0.6772
Previous Weekly High	0.6818
Previous Weekly Low	0.6736
Previous Monthly High	0.7082
Previous Monthly Low	0.6832
Daily Fibonacci 38.2%	0.6789
Daily Fibonacci 61.8%	0.6783
Daily Pivot Point S1	0.6769
Daily Pivot Point S2	0.6756
Daily Pivot Point S3	0.6741
Daily Pivot Point R1	0.6797
Daily Pivot Point R2	0.6812
Daily Pivot Point R3	0.6825

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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