FXStreet (Mumbai) – The Australian dollar stalled its upbeat momentum versus the US dollar in the mid-European session, sending AUD/USD slightly away from 0.78 barrier. The Aussie erased most gains and trades modestly higher as the US dollar regained lost ground and edged higher across the board amid Greece deal expectations.
AUD/USD stuck below 0.7800
Currently, the AUD/USD pair trades 0.07% higher at 0.7774, retreating from 0.7797 highest. The Aussie defends mild gains as the US dollar took a breather in its rally as markets turn their attention towards Greece talks ahead of Euro group meeting due to commence shortly. Earlier in the session, the Aussie was strongly bid as traders were buying riskier currencies in anticipation of a quick Greek solution.
Meanwhile, analysts at ANZ noted, “The most likely path for the AUD over the next few months is sideways. That said, tail risks remain more tangible than usual and vigilance is needed. Negotiations between Greece and Europe sit at the centre of these risks; we look for opportunities to sell the AUD, particularly on any rallies above $0.80.”
Looking ahead, markets keep an eye on Greece update, beside US existing home sales due later today will be closely watched ahead of China PMI and Aus HPI q/q data to be reported tomorrow.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7797 (Today’s High) levels, above which gains could be extended to 0.7851 (June 18 High) levels. On the flip side, support is seen at 0.7734 (June 19 Low) levels from here it to 0.7708 (June 18 Low) levels.
(Market News Provided by FXstreet)