AUD/USD fades OPEC deal-led bullish spike to 3-week highs

Having rallied to a fresh three week high, the AUD/USD pair witnessed a profit taking move and has now retraced back below 0.7700 handle.

Currently trading at a fresh session low around 0.7685 region, the first OPEC output limit deal since 2008 triggered a rally in oil prices and boosted demand for commodity-linked currencies - like Aussie. The major cleared 0.7700 barrier and jumped to the highest level since September 8.

The Australian Dollar has been one of the strongest major currencies for the week, but seems to have lost its upside momentum as bulls seemed inclined towards taking some profits off the table after the pair recorded three consecutive days of decent gains. 

Looking forward, focus now turns to US economic docket, where the final GDP print for the second quarter of 2016 will be the key highlight and might provide fresh impetus. Traders will also confront the release of weekly jobless claims and pending home sales data later during NA trading session.

Technical levels to watch

Immediate downside support is pegged at 0.7670-65 area, which is followed by a horizontal support near 0.7645 level. A convincing break below 0.7645 support is likely to extend the corrective move further towards weekly lows support near 0.7610-0.7600 handle.

On the flipside, renewed buying interest above 0.7700 handle, and a subsequent momentum above 0.7710 (session high), should lift the pair immediately towards 0.7732 (Sept. 8 high) and the up-move could further get extended towards August monthly high resistance near 0.7750-55 region.