AUD/USD stalls post-Aussie GDP slide, eyeing to retake 0.80 mark

The AUD/USD pair seems to have stalled its post-Australian GDP slide from over one-month highs and rebounded around 10-15 pips from session lows.

The pair retreated sharply from 0.8020 level after the latest Australia growth figures failed to impress market participants bracing for some positive surprise. In fact, the second quarter GDP matched consensus estimates and came-in to show q-o-q growth of 0.8%, with the yearly rate ticking higher to 1.8%. 

   •  Australia: Economy grew by 0.8% in Q2 - Westpac

This coupled with a modest US Dollar uptick further seems to have prompted some long winding, especially after the pair's repeated failure (for the second time in past 24-hours) to sustain above the key 0.80 psychological mark. 

However, the prevalent bullish sentiment around commodity space, especially copper, was seen lending support to commodity-linked currencies and helped limit any sharp losses, at least for the time being.

Later during the NA session, the release of US ISM non-manufacturing PMI would now be looked upon for some fresh impetus. In the meantime, broader sentiment surrounding the greenback would remain an exclusive driver of the pair's momentum through European trading session.

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes: "The 4 hours chart shows that the price is anyway holding above a bullish 20 SMA and the 61.8% retracement of the July/August decline at 0.7965, now the immediate support. Technical indicators in the mentioned chart have retreated sharply from overbought readings, now approaching their mid-lines. It would take a break below the mentioned Fibonacci support, to confirm a downward extension for this Wednesday."