“¢ Receding domestic political jitters provides a strong boost to the Aussie.
“¢ A fresh wave of USD selling remains supportive of the goodish rebound.
“¢ Failed US-China trade talks might keep a lid on the China-proxy Aussie.
The AUD/USD pair built on its intraday sharp rebound from fresh weekly lows, with bulls now aiming towards reclaiming the 0.7300 handle.
The Australian Dollar caught some strong bids and recovered a part of overnight slump amid receding domestic political jitter. The ruling Liberal party voted the Australian Treasurer Scott Morrison as the next Prime Minister and ended the recent political crisis that had knocked down the major in the previous session.
The up-move was further supported by some renewed selling bias around the US Dollar, which failed to build on overnight goodish up-move supported by firming prospects for an imminent Fed rate hike move at September meeting.
It would now be interesting to see if the pair is able to build on the positive momentum or escalating US-China trade-tensions keep a lid on any further up-move for the China-proxy Australian Dollar, especially after the low-level US-China trade talks ended without any meaningful positive outcomes.
Moving ahead, today’s US economic docket, highlighting the release of durable goods orders data, will now be looked upon for some short-term trading opportunities ahead of the Fed Chair Jerome Powell’s highly anticipated speech at the annual Economic Policy Symposium, in Jackson Hole.
Technical levels to watch
Momentum beyond the 0.7300 handle could get extended towards 0.7320 intermediate hurdle en-route the 0.7355-60 supply zone. On the flip side, the 0.7240-35 region might continue to act as an immediate strong support, which if broken might turn the pair vulnerable to head back towards challenging the 0.7200 handle.
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