FxWirePro: AUD/USD slips below 0.80 handle post Australia GDP data, downside likely to be limited on broadly weak US dollar

• AUD/USD makes another failed attempt to extend gains above 0.80 handle in the Asian session today.
   
• Australia Q2 GDP came-in at 1.8% y/y, compared to the previous quarter’s print of 1.7%. The quarter-on-quarter number printed at 0.8%.
   
• Data was in line with consensus, but markets disappointed as expectations of a better-than-expected print were built-in following upbeat current account data released yesterday.
   
• The pair has shown breakout above triangle top and we see scope for further upside.
   
• Strong commodity prices and a broadly weak USD likely to keep downside limited.
   
• Weekly charts are also bullish. The pair has broken above weekly 200-SMA at 0.7961. Close above will see further upside.

Support levels - 0.7966 (5-DMA), 0.7961 (weekly 200-SMA), 0.7919 (20-DMA), 0.79 (rising trendline)

Resistance levels - 0.8028 (Sept 5th high), 0.8042 (Aug 1st high), 0.8065 (July 27 high)

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -13.0156 (Neutral), while Hourly USD Spot Index was at -101.714 (Bearish) at 0350 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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