FXStreet (Mumbai) – The Australian dollar remains heavy versus the US dollar in the early European trades, with AUD/USD bouncing-off lows printed at 0.7694. The Aussie erased gains and fell back in red mainly driven by strengthening US dollar across the board.
AUD/USD steadies near 0.7700
Currently, the AUD/USD pair trades -0.23% lower at 0.7708, recovering from session lows at 0.7694. The Australian dollar remains pressured as the US dollar was caught by a fresh bid-wave with markets digesting the latest US home sales figures.
While markets were left unimpressed by better than expected China factory data, sending the Australian dollar nearly 30 pips lower.
The HSBC-Markit PM) rose from 49.2 to a preliminary 49.6 in June, where a figure below 50 signals weaker activity, while a reading above 50 indicates an expansion.
Westpac currency strategist Rob Rennie notes, “Between now and then, we could see the AUD up to 0.79 and possibly 0.7950 level before we would describe the currency as extreme to fair value. That suggests we could be stuck with the current 0.7550 to 0.80 range for some time to come. We do expect the AUD to break sustainably lower, just not any time soon.”
In the day ahead, a heavy North American calendar is expected to keep the traders busy with crucial durable goods orders from the US on cards.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7740 (Today’s High) levels, above which gains could be extended to 0.7799 (June 22 High) levels. On the flip side, support is seen at 0.7694 (Today’s Low) levels from here it to 0.7642 (June 17 Low) levels.
(Market News Provided by FXstreet)