“¢ Powell’s dovish comments keep a lid on any meaningful USD up-move.
“¢ Subdued commodity prices fail to provide any boost to the Aussie.
The AUD/USD pair has managed to bounce off few pips from daily lows, albeit has struggled to gain any meaningful positive traction.
The pair struggled to build on Friday’s goodish up-move and met with some fresh supply near mid-0.7300s at the start of a new trading week amid a modest US Dollar rebound. The USD uptick, however, lacked any strong follow-through and remained capped on the back of Friday’s dovish sounding comments by the Fed Chair Jerome Powell at the closely watched Jackson Hole symposium.
Meanwhile, a subdued action around commodity space, especially copper, did little to provide any additional boost to the commodity-linked Australian dollar and further collaborated to the pair’s range-bound price action at the start of a new trading week.
In absence of any major market moving economic releases, the pair seems more likely to continue with consolidative price action as market participants now look forward to this week’s key event risk – the prelim US GDP growth figures for some fresh directional impetus.
Technical outlook
Valeria Bednarik, FXStreet’s own American Chief Analyst writes: “The AUD/USD pair holds above the 0.7300 level, offering a neutral short-term stance according to technical readings in the 4 hours chart, as the price is confined to a tight range below the 50% retracement of its July/August decline, while the 100 SMA heading south and converging with the mentioned Fibonacci level. Indicators in the mentioned chart are directionless in neutral levels.”
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