AUD has been the weakest currency in recent trade. Markets are getting set for the GDP data on Friday. AUD has been the weakest currency in recent trade but is now consolidating vs the greenback below the 200-hr SMA at 0.7399 as the dollar picks up a bid and commodities fall away, (copper’s recovery capped), and the yuan drops back. Despite some disappointing data releases n the US session, the dollar has picked up a bid between the range of 94.0840-94.7270 due to the back and forth on global trade. Bloomberg reported earlier that China will retaliate to the Trump’s administration with a plan to respond to any such measures, whether they are $16B or $200B. However, markets are getting set for the GDP data on Friday, and ahead of the event, we had the Atlanta Fed GDPNow coming in at 3.8%, down from 4.5% for 2Q growth. The consensus for tomorrow’s data is for 4.2% growth – there had been some chatter that Trump reportedly told an associate it will be slightly higher. However, the central bank theme continues to underpin the dollar and the longer-term bear trend is likely to resume solely on the back of the RBA & Fed rate paths in divergence. AUD and the terms of trade Meanwhile, there was an unexpected broad-based leap in hard and soft commodity export prices which analysts at TD Securities explained was encouraging for trade and economic growth. “Even if the terms of trade fell -1%/q, the annual pace jumps to 2.5%/y given favourable base effects. For the AUD, the terms of trade is a medium-term driver of the exchange rate, and closely followed by the RBA. Our commodity price & 2y rates differential fair value model is $US0.752, with commodity prices currently providing the upside.” AUD/USD levels AUD/USD is consolidating below the 50-D SMA and supported just below the 21-D SMA. RSIs are neutral. On a break of the 50-D SMA, eyes will turn to the 200-DMA and June highs which is a possibility so long as the barrier support remains intact down at 0.73 the figure. However, there is still the risk of a complete unwind of the two-year year-long reflation trade and the 0.72 handle would then be at risk. Below there comes the 0.7110/70 support zone. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next BoE policy decision preview, Aug (Thurs 2 Aug) – Nomura FX Street 5 years AUD has been the weakest currency in recent trade. Markets are getting set for the GDP data on Friday. AUD has been the weakest currency in recent trade but is now consolidating vs the greenback below the 200-hr SMA at 0.7399 as the dollar picks up a bid and commodities fall away, (copper's recovery capped), and the yuan drops back. Despite some disappointing data releases n the US session, the dollar has picked up a bid between the range of 94.0840-94.7270 due to the back and forth on global trade. Bloomberg reported earlier that China will retaliate to the… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.