AUD/USD eyes a re-test of 0.8000 ahead of Aus GDP

AUD/USD is seen trying hard to chew the offers placed around 0.7985 region in the run up to 0.80 handle, now consolidating the bounce following RBA Governor Lowe’s comments.

AUD/USD: Risk-on underpins

The Aussie found fresh buyers near mid-0.79s and reverted towards daily tops reached at 0.7985 levels, following the release of upbeat Chinese services PMI data.

Further, risk-on rally seen in the European equities combined with expectations of a better Australian GDP report also collaborates to the buoyant tone seen around the spot.

However, a non-event RBA policy announcement as well as nothing of note delivered by the RBA Governor Lowe during his speech last hour, continue to keep the gains in check.

Next of relevance for the pair remains the US factory orders data and Fedspeaks due later in the NA session today, followed by the much-awaited Australia’s June quarter GDP report due out in Asia tomorrow.

AUD/USD Levels to watch   

Haresh Menghani, Analyst at FXStreet explained, “immediate support is pegged near 0.7945-40 area, below which the pair is likely to head towards testing the 0.7900 handle before eventually dropping to its next support near the 0.7875-70 region. On the upside, the 0.80 handle remains immediate strong hurdle, which if conquered is likely to accelerate the up-move towards August monthly high resistance near the 0.8040-45 region en-route 0.8065 level (26-month high touched late July).”