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AUD/USD hits over 1-week lows, inching closer to 0.7200 mark

2018-9-27 15:30:10Trading Strategies
AUD/USD hits over 1-week lows, inching closer to 0.7200 mark

The AUD/USD pair came under some fresh selling pressure on Thursday and dropped to over one-week lows in the last hour.

A dovish interpretation of the removal of “accommodative” policy language from the latest FOMC monetary policy statement initially lifted the pair sharply higher to fresh monthly tops, beyond the 0.7300 handle and 50-day SMA on Wednesday.

The positive momentum quickly lost momentum after the Fed Chair Jerome Powell, in the post-meeting press conference, assured that the adjustment does not imply a change in the gradual monetary policy path.

The comments helped the US Dollar to regain traction, which coupled with persistent US-China trade tension exerted some fresh downward pressure on the China-proxy Australian Dollar.

Meanwhile, a modest retracement in the US Treasury bond yields was largely offset by a negative trading sentiment around copper prices, which did little to lend any support to the commodity-linked Australian Dollar.

Moving ahead, today's US economic docket, highlighting the release of final Q2 GDP growth figures and durable goods orders, will now be looked upon for some fresh trading impetus later during the early North-American session.

Technical levels to watch

Immediate support is pegged near the 0.7210-0.7200 region, below which the pair is likely to accelerate the fall further towards 0.7145-40 strong horizontal support. On the flip side, any attempted recovery now seems to confront fresh supply near the 0.7255-60 region, which if cleared could assist the pair to make a fresh attempt towards conquering the 0.7300 handle.