“¢ The post-FOMC USD rally takes a brief pause and helps the pair to gain some traction.
“¢ Positive commodity prices underpinned commodity-linked Aussie and remained supportive.
The AUD/USD pair caught some bids on the last trading day of the week and recovered a part of previous session’s fall to over one-week lows.
The pair stalled its post-FOMC sharp decline from near four-week tops, levels beyond 50-day SMA hurdle, and found some support near the 0.7200 handle amid a subdued US Dollar price action.
With investors looking past Thursday’s upbeat US durable goods orders and final US Q2 GDP print, the USD bullish momentum took a brief pause and turned out to be one of the key factors lending some support to the major.
This coupled with a positive tone around commodity space, especially copper, underpinned the commodity-linked Australian Dollar and further collaborated to the pair’s modest rebound on Friday.
The up-move, however, seemed lacking any strong conviction/follow-through amid concerns over a full-blown US-China trade war, which might continue to keep a lid on any runway rally for the China-proxy Aussie.
Traders now look forward to a slew of second-tier US economic data in order to grab some short-term opportunities later during the early North-American session.
Technical levels to watch
Immediate resistance is pegged near the 0.7240-50 region, above which the pair is likely to make a fresh attempt towards surpassing the 50-day SMA hurdle and conquering the 0.7300 handle.
On the flip side, a sustained weakness below the 0.7200 handle is likely to pave the way for an extension of the downfall further towards mid-0.7100s en-route the key 0.7100 round figure mark.
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