5 Aug 2015
AUD/USD capped below 0.7380, ignores upbeat China services PMI
FXStreet (Mumbai) - The Australian dollar continues its consolidative mode versus its American counterpart in the mid-Asian trades, keeping AUD/USD near the upper band of 0.73 handle, as AUD bulls take a breather after the recent upsurge, brushing off stronger than expected Chinese services PMI data.
AUD/USD weighed by stronger USD
Currently, the AUD/USD pair trades -0.20% lower at 0.7364, retracing from fresh two-week highs reached at 0.7429 on Tuesday. The Aussie edged lower this session, erasing a part of yesterday’s gains as a broadly stronger greenback on the back of Fed Lockhart’s hawkish comments continue to boost the buck.
Moreover, markets resorted to profit-taking after yesterday’s RBA-driven rally to fresh two-week highs ahead of another big event due tomorrow from Australia – employment data. While Kiwi weakness following NZ sluggish labour market report also keeps its OZ neighbour undermined.
While, upbeat China services PMI data did little to lift the sentiment around the Aussie. Caixin China Services PMI came in at 53.8 in July, up from June’s recent low of 51.8, hitting an 11-month high.
Markets now await a series of crucial US economic releases due later in the US session ahead of the much awaited Australian employment data due tomorrow.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7400 levels, above which gains could be extended to 0.7429 (Aug 4 High). On the flip side, support is seen at 0.7347 (July 16 Low) levels from here it to 0.7300 levels.
AUD/USD weighed by stronger USD
Currently, the AUD/USD pair trades -0.20% lower at 0.7364, retracing from fresh two-week highs reached at 0.7429 on Tuesday. The Aussie edged lower this session, erasing a part of yesterday’s gains as a broadly stronger greenback on the back of Fed Lockhart’s hawkish comments continue to boost the buck.
Moreover, markets resorted to profit-taking after yesterday’s RBA-driven rally to fresh two-week highs ahead of another big event due tomorrow from Australia – employment data. While Kiwi weakness following NZ sluggish labour market report also keeps its OZ neighbour undermined.
While, upbeat China services PMI data did little to lift the sentiment around the Aussie. Caixin China Services PMI came in at 53.8 in July, up from June’s recent low of 51.8, hitting an 11-month high.
Markets now await a series of crucial US economic releases due later in the US session ahead of the much awaited Australian employment data due tomorrow.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7400 levels, above which gains could be extended to 0.7429 (Aug 4 High). On the flip side, support is seen at 0.7347 (July 16 Low) levels from here it to 0.7300 levels.