5 Aug 2015
AUD/USD: weak tone intact, drops below 0.7350
FXStreet (Mumbai) - The weak tone on the AUD/USD pair remained intact, pushing the spot to a session low of 0.7342 as we head into the European session.
USD bulls cheer Lockhart’s comments
The USD bulls clawed their way back after Atlanta Fed’s Lockhart on Tuesday expressed his support for a rate hike in September. The 2-yr yield, which mimics rate hike expectations, rose to 0.748%, undoing Friday’s losses. Consequently, the spot ran into offers in the early European session.
The bid tone on the USD could strengthen further in case the US private sector employment data and service activity data due for release today paints an optimistic picture about the economy. Meanwhile, the uptick in crude prices may provide a cushion to the AUD.
AUD/USD Technical Levels
The spot currently trades around 0.7345. The immediate support is located at 0.7335 (hourly 50-MA) and 0.73 handle. On the other hand, resistance is seen at 0.7367 (July 31 high) and 0.7428 (Tuesday’s high).
USD bulls cheer Lockhart’s comments
The USD bulls clawed their way back after Atlanta Fed’s Lockhart on Tuesday expressed his support for a rate hike in September. The 2-yr yield, which mimics rate hike expectations, rose to 0.748%, undoing Friday’s losses. Consequently, the spot ran into offers in the early European session.
The bid tone on the USD could strengthen further in case the US private sector employment data and service activity data due for release today paints an optimistic picture about the economy. Meanwhile, the uptick in crude prices may provide a cushion to the AUD.
AUD/USD Technical Levels
The spot currently trades around 0.7345. The immediate support is located at 0.7335 (hourly 50-MA) and 0.73 handle. On the other hand, resistance is seen at 0.7367 (July 31 high) and 0.7428 (Tuesday’s high).