The AUDUSD currency pair strengthens and recovers the 0.6800 level on Thursday.

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• AUD/USD gains traction and reclaims the 0.6800 mark on Thursday.

The pair currently trades last at 0.67967.

The previous day high was 0.6794 while the previous day low was 0.673. The daily 38.2% Fib levels comes at 0.6755, expected to provide support. Similarly, the daily 61.8% fib level is at 0.677, expected to provide support.

The AUD/USD pair attracts some buyers and surges above the 0.6800 area during the Asian session on Thursday. The prevalent US Dollar selling bias supports the uptick in AUD/USD. The major pair currently trades around 0.6807, gaining 0.75% for the day.

On Thursday, the Australian Bureau of Statistics showed that the Import Price Index QoQ in the second quarter dropped 0.8%, against the market consensus of a 7.3% decline and a 4.2% drop in the previous reading. Meanwhile, the Export Price Index fell 8.5%, worse than expected, with a 7.8% rise and a 1.6% increase in the first quarter.

The softer Australian data on Wednesday suggests reasons for the Reserve Bank of Australia (RBA) to pause the additional rate hikes. Earlier this week, the Australian Bureau of Statistics (ABS) reported that the country’s Consumer Price Index (CPI) rose 0.8% in the second quarter of 2023, compared to a 1.4% increase in the first quarter and the market consensus of 1.0% growth.

In the meantime, the fear of the economic slowdown in China might be a headwind for the China-proxy Aussie. On Tuesday, Chinese news agency Xinhua reported that Chinese policymakers would take up economic policy adjustments, strengthening confidence and mitigating risks. However, concern is high over whether China will deliver on its policy pledges.

Across the pond, the Federal Open Market Committee (FOMC) hiked its interest rate by 25 basis points (bps) to a target range of 5.25%–5.5%. Fed Chairman Jerome Powell stated following the rate decision that the FOMC will assess the totality of incoming data, along with its implications for economic activity and inflation. He added that it’s possible to raise the Fed funds rate again at the September meeting if the data warrants it.

Market participants will digest the FOMC statement and shift their attention to the economic data. Later in the day, the US Initial Jobless Claims, Durable Good Orders for June, Advanced Gross Domestic Product (GDP) QoQ, and Core Personal Consumption Expenditure (PCE) Price Index MoM will be due. The Retail Sales MoM and the Producer Price Index (PPI) will be released on the Australian docket on Friday.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6808 at the time of writing. Pair opened at 0.6758 and is trading with a change of 0.74 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 0.6735, 50 SMA 0.6697, 100 SMA @ 0.6691 and 200 SMA @ 0.6725.

The previous day high was 0.6794 while the previous day low was 0.673. The daily 38.2% Fib levels comes at 0.6755, expected to provide support. Similarly, the daily 61.8% fib level is at 0.677, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.6728, 0.6697, 0.6664
• Pivot resistance is noted at 0.6791, 0.6824, 0.6854

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