Search ForexCrunch

   “¢   The USD remains well bid despite today’s slightly weaker US economic data.
“¢   Positive copper prices underpinned Aussie and remained supportive.

The AUD/USD pair held on to its mildly positive tone through the early North-American session and is currently placed at the top end of its daily trading range post-US economic data.

The pair stalled its post-FOMC sharp decline and found some support near the 0.7200 handle, with a goodish pickup in the US Dollar demand, primarily led by the ongoing slump in the shared currency, doing little to prompt any fresh selling.

The USD maintained its strong bid tone and seemed rather unaffected by today’s slightly weaker US economic data, showing that the Core PCE Price Index, the Fed’s preferred inflation gauge, remained flat on a monthly basis and the yearly rate held steady at 2.0% in August.

Adding to the disappointment, personal income increased by 0.3% m/m in August, missing 0.4% consensus estimates, but was largely negated by personal spending data, coming in to show a growth of 0.3% m/m as against 0.3% anticipated.

Today’s US economic docket also features the release of Chicago PMI and Revised UoM Consumer Sentiment, which might further help traders grab some short-term trading opportunities on the last trading day of the week.

Technical levels to watch

Immediate resistance is pegged near the 0.7235 level and is followed by the 0.7260-70 supply zone, above which the pair is likely to make a fresh attempt towards conquering the 0.7300 handle.

On the flip side, weakness below the 0.7200 handle is likely to accelerate the fall towards 0.7175-70 horizontal support en-route the 0.7140 level, before the pair eventually drops to test the 0.7100 mark.