On Thursday, the AUDUSD pair at a rate of 0.68068 sees an influx of new buying interest and is backed by continued selling pressure on the USD.

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• AUD/USD catches fresh bids on Thursday and draws support from sustained USD selling.

The pair currently trades last at 0.68068.

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 regains positive traction on Thursday and jumps to a one-week high, beyond the 0.6800 round-figure mark during the Asian session. Spot prices currently trade with strong intraday gains of over 0.80% and remain well supported by the prevalent US Dollar (USD) selling bias.

In fact, the USD Index (DXY), which tracks the Greenback against a basket of currencies, drifts lower for the third straight day and retreats further from a two-week high touched on Tuesday. A general consensus that the Federal Reserve (Fed) is nearing the end of its current policy tightening cycle is seen as a key factor weighing on the Greenback. Apart from this, the latest optimism over hopes for more stimulus measures from China undermines the safe-haven buck and benefits antipodean currencies, including the Australian Dollar (AUD).

The downside for the USD, however, seems limited as the Fed left the door open for one more rate hike in September or November. It is worth recalling that Fed Chair Jerome Powell, speaking at the post-meeting press conference, said that the economy still needs to slow and the labour market to weaken for inflation to credibly return to the 2% target. The comments follow the widely expected decision to hike interest rates by 25 bps, to the 5.25%-5.50% range, or the highest level in 22 years, and support prospects for the emergence of some USD dip-buying.

Furthermore, the softer Australian consumer inflation figures released on Wednesday strengthen the case for the Reserve Bank of Australia (RBA) to pause future rate hikes. This, along with China’s economic woes, could act as a headwind for the China-proxy Aussie. The National Bureau of Statistics (NBS) reported that profits at China’s industrial firms contracted by 16.8% in the first half from a year earlier in the wake of waning demand at home and abroad. This warrants caution before placing fresh bullish bets around the AUD/USD pair.

Hence, it remains to be seen if bulls are able to capitalize on the move beyond the 0.6800 round figure or opt to take some profits off the table ahead of the important US macro data. Thursday’s US economic docket features the releases of the Advance Q2 GDP report, Durable Goods Orders, the usual Weekly Initial Jobless Claims and Pending Home Sales. The data might influence the USD price dynamics and allow traders to grab short-term opportunities around the AUD/USD pair later during the early North American session.

Technical Levels: Supports and Resistances

AUDUSD currently trading at 0.6817 at the time of writing. Pair opened at 0.6758 and is trading with a change of 0.87 % .

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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