AUD/USD finds support near 0.6750, fails to turn positive on the day

• Disappointing PMI data from US weigh on Greenback.
• Hawkish Fed commentary limits DXY’s fall on Thursday.
• AUD/USD pair continues to stay directionless in its weekly range.  

The AUD/USD pair is having a difficult time determining its next short-term direction on Thursday and continues to trade in its tight weekly range. After dropping to a daily low of 0.6750 in the last hour, the pair recovered a portion of its daily losses and was last seen at 0.6765, losing 0.24% on a daily basis.

Earlier today, the data published by the IHS Markit showed that the business activity in the US manufacturing sector contracted for the first time in nearly a decade in August with the Manufacturing PMI dropping to 49.9 and missing the market expectation of 50.5. Although the initial market reaction to the data dragged the US Dollar Index to a daily low of 98.08, hawkish comments from Fed officials allowed the index to retrace its drop.

Fed commentary to continue to impact USD

During an interview with CNBC, Philly Fed President Harker said that the did not see the need for another rate cut in the near-term. “The growth now is exactly what we had anticipated last year,” Harker added. On the same note, Kansas Fed President George said that she did not see any signals of a downturn in the economy and voiced her opposition to introducing additional stimulus. At the moment, the US Dollar Index is at 98.16, still down 0.09% on the day.

On Friday, FOMC members Bullard, Kaplan and Mester  will be talking about the Fed’s monetary policy in scheduled interviews on the sidelines of the Jackson Hole symposium. Later in the day, FOMC Chairman Powell will be delivering his prepared remarks.

Technical levels to watch for