AUD/USD – confluence of support in range of 0.7485-0.7490

Offered tone around AUD is making it harder for the pair the AUD/USD to pair to hold above 0.75 handle, although losses are being capped above support range of 0.7490 (50% of 0.7835-0.7145) – 0.7485 (100-DMA).

Offered at 0.7508

Pair was offered at a high of 0.7508 in Asia after having rebounded on Thursday from the support of the daily rising trend line drawn from May 30 low and June 24 low. The currency has been on a losing streak since last Friday on growing calls of RBA rate cut in June.

Meanwhile, odds of Fed rate hike have gone up from 20% post Brexit vote to 42%. Consequently, the bid tone around USD is strong. With no major data due, the spot is at the mercy of the overall market sentiment ahead of the preliminary US manufacturing PMI report.

AUD/USD Technical Levels

A breach of confluence of support at 0.7490 (50% of 0.7835-0.7145) – 0.7485 (100-DMA) would open doors for 0.7453 (previous day’s low). Further losses could run into 50-DMA support of 0.7404. On the other hand, a break above 0.7510 (5-DMA) would expose 0.7545 (July 5 high). Next major hurdle is seen at 0.7600.