27 Jul 2015
AUD/USD: Bulls fighting for control, 0.7300 on sight
FXStreet (Mumbai) - The Australian dollar reversed losses and edged higher versus the US dollar in Asia, lifting AUD/USD towards 0.73 barrier, as the AUD bulls jumped back into the bids as the US currency continues to lose ground following poor US housing data released on Friday.
AUD/USD strives for 0.73 handle
Currently, the AUD/USD pair trades marginally higher at 0.7283, fading a spike to 0.7291 highs. The Aussie shaved-off losses largely on profit-taking after the recent drop to fresh six-year lows stemmed by tumbling commodities prices and tepid China data.
On Friday, the AUD/USD sharply dropped to fresh multi-year lows at 0.7257 following the news that Chinese factory production had contracted at the steepest pace in fifteen months according to HSBC's manufacturing PMI in July.
Moreover, the situation on the commodities market, with bullion prices reaching multi-year lows added extra bearish pressure to the Aussie.
Traders now look forward to a host of crucial US economic data to be released in the week along with a slew of data from Australia as well. While Friday’s FOMC decision and Thursday’s RBA Stevens speech are expected to emerge the main markets movers this week.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7300 levels, above which gains could be extended to 0.7363 (July 24 High) levels. On the flip side, support is seen at 0.7257 (July 24 Low) levels from here it to 0.7200 levels.
AUD/USD strives for 0.73 handle
Currently, the AUD/USD pair trades marginally higher at 0.7283, fading a spike to 0.7291 highs. The Aussie shaved-off losses largely on profit-taking after the recent drop to fresh six-year lows stemmed by tumbling commodities prices and tepid China data.
On Friday, the AUD/USD sharply dropped to fresh multi-year lows at 0.7257 following the news that Chinese factory production had contracted at the steepest pace in fifteen months according to HSBC's manufacturing PMI in July.
Moreover, the situation on the commodities market, with bullion prices reaching multi-year lows added extra bearish pressure to the Aussie.
Traders now look forward to a host of crucial US economic data to be released in the week along with a slew of data from Australia as well. While Friday’s FOMC decision and Thursday’s RBA Stevens speech are expected to emerge the main markets movers this week.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7300 levels, above which gains could be extended to 0.7363 (July 24 High) levels. On the flip side, support is seen at 0.7257 (July 24 Low) levels from here it to 0.7200 levels.