- AUD/USD failed shy of 0.80 handle, slips lower to close below 5-DMA on USD strength post robust macro data from the US.
- U.S. Q2 GDP rose 3.0% annualized vs 2.7% expected, and 2.6% previous in its second estimate.
- ADP employment rose 237k in August vs 185k expected and boosted expectations of positive nonfarm payrolls report.
- The Aussie ignores upbeat Capex number released earlier today. Australia private Capex rose 0.8% in Q, beating the estimate of 0.3% by a big margin.
- AUD/USD trades narrow range, capped below 5-DMA at 0.7929. A continuation of US dollar strength could keep the pair subdued.
- Downside finds major trendline support at 0.7890. Break below could see further drag.
Support levels - 0.7890 (rising trendline), 0.7832 (50-DMA), 0.78, 0.7784 (38.2% Fib retrace of 0.73285 to 0.80656 rally)
Resistance levels - 0.7929 (5-DMA), 0.7968 (weekly 200-SMA), 0.7995 (Aug 30 high)
Recommendation: Good to go short on break below 0.7890, SL: 0.7970, TP: 0.7840/ 0.78/ 0.7785/ 0.7715
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at 53.6283 (Neutral), while Hourly USD Spot Index was at 47.6738 (Neutral) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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