AUD/USD: Supply caps recovery at 100-DMA

The ongoing recovery in the AUD/USD pair appears to have lost steam just shy of the mid-point of 0.76 handle, sending the prices back towards 20-DMA now located at 0.7623.

AUD/USD rejected at 100-DMA

Currently, the AUD/USD pair trades +0.13% higher at 0.7630, looking to test daily lows posted at 0.7619 in Asia opening trades. The major took on the recovery from 0.7585 region on the back of a broad based US dollar retreat, although ran through fresh offers at 100-DMA (0.7647), largely on the back of sustained oil-price weakness and prevalent cautious tone in markets.

Moreover, a lack of fresh fundamental drivers and lower commodities’ prices exerts downward pressure on the AUD/USD pair. Markets now eagerly await fresh economic data out of the US later tonight, which includes flash manufacturing PMI and new home sales, ahead of the Jackson Hole Symposium scheduled later this week.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7700 (round figure) above which gains could be extended to the next hurdle located at 0.7725/37 (Aug 12 high/ daily pivot). On the flip side, the immediate support located at 0.7600 (20-DMA/ round figure). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7585 (Aug 22 low).