AUD/USD Price Analysis: Intraday Gains Erased
The AUD/USD pair has lost most of its intraday gains and could slip lower over the coming hours, thanks to the US Dollar’s strength. The pair could slip towards 0.7500 unless the Aussie gets back to its earlier performance level.
AUD/USD Sets New Weekly High Close To 0.7600
The AUD/USD pair began the day in an excellent fashion, with the Australian dollar performing well. The rally came during the Asian session earlier today, reaching its highest level in a week at 0.7599 before slightly consolidating.
The Aussie’s strong performance can be attributed to the Reserve Bank of Australia (RBA) announcing that it has left its policy rate unchanged, maintaining it at a record low of 0.1% in July as largely expected. Despite that, the apex bank said it would reduce the amount of weekly bonds available for purchase to A$4 billion from A$5 billion. The announcement by the RBA gave the Aussie an early boost in the market today.
Greenback Bounces Back
The US Dollar bounced back after losing to the Aussie earlier today. The AUD/USD pair entered a consolidation phase after the Aussie’s strong performance earlier. The pair has surrendered most of its intraday gains and is now trading at the lower half of the 0.7500s.
If the US Dollar’s rally continues, the AUD/USD pair could slip below 0.7500 before the end of the US trading session. The Greenback has been able to hold steady and wasn’t affected by the softer-than-expected US ISM Services PMI. The PMI declined to 60.1, lower than the consensus estimate of 63.5.
At the time of this fx report, the AUD/USD pair is trading at 0.7503, implying that it would only be a matter of time before it slips below 0.7500. The bulls have to defend the 0.7400 support region to avoid further losses over the next few hours.
This article was originally posted on FX Empire
