AUD/USD testing highs near 0.7300 in early Tokyo, eyes Aus PPI

FXStreet (Mumbai) - The Australian dollar erased losses and peeked into the green versus its American counterpart in the early Asian trades, lifting AUD/USD to session highs just ahead of 0.73 handle. The Aussie extends its overnight steady recovery from fresh six-year lows as the US dollar took a pause in its rally and consolidates previous gains against its major rivals.

AUD/USD recovers from 0.7252 – fresh multi-year lows
Currently, the AUD/USD pair trades modestly flat at 0.7295, quickly retracing from 0.7305 session highs.
The Aussie witnessed tepid recovery largely as the greenback took a breather in its rally as markets took to profit-taking after the buck rallied to fresh weekly highs across the board backed by increased rate-hike bets spurred on upbeat US Q2 GDP figures.

Investors cheered the first estimate of US GDP for the second quarter as the fresh release strongly rebounded to 2.3% q/q, leaping from the upwardly revised 0.6% booked previously. Markets had anticipated a marginally better reading of 2.5%.

Meanwhile, traders now await Australia’s factory gate prices gauge due to be released shortly for fresh cues on the Aussie.

AUD/USD Technical Levels

The pair has an immediate resistance at 0.7324 (July 30 High) levels, above which gains could be extended to 0.7363 (July 24 High). On the flip side, support is seen at 0.7280 levels from here it to 0.7252 (July 30 Low) levels.

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