AUD/USD turns neutral at 0.7615

After an initial drop close to weekly lows and a subsequent bounce-back to session high, the AUD/USD pair finally seems to have stabilized in neutral territory and is currently hovering around Tuesday's closing level near 0.7615 region.

The pair is moving independent of a broadly mixed US Dollar performance, which seems to have gains some renewed buying interest despite of higher-than-expected pull-back in existing home sales data for the month of July.

Meanwhile, disappointing Australian construction released on Wednesday has been a key factor weighing on the pair and restricted any sharp appreciating move for the pair.

In absence of any major market moving releases, focus remains on the Fed Chair Janet Yellen's remarks at Jackson Hole Symposium on Friday preceded by US GDP growth number for the second quarter of 2016.

Technical outlook

Pointing to the pair's near-term bearish set-up, Omkar Godbole, Editor and Analyst at FXStreet, notes, "Despite pair’s recovery from yesterday’s low of 0.7584, the subsequent failure to take out 0.7643 in the late NY session and early Asia suggests the corrective rally lacks steam and fresh selling is likely. In such a case, the spot could drift lower to 0.7515 (trend line drawn from June 24 low and July 27 low). Only a day end close above 0.7643 could signal bearish invalidation."

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