Home AUD/USD finds some support near 0.7200 handle
FXStreet News

AUD/USD finds some support near 0.7200 handle

   “¢   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.
 

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.