AUD/USD: consolidates below key 0.7675 area for a nuetral outlook

AUD/USD is currently consolidating the recovery from 0.7602 lows.

AUD/USD made impressive recovery last week on the back of the FOMC monetary policy announcement and RBA's governor Debelle suggesting he is no hurry to cut rates, despite their inflation target. Meanwhile, RBA Assistant Governor Edey has a speech scheduled on Wednesday and the US data for the rest of the week, specifically durable goods and estimates for US GDP for Q2 that have been suggested to be higher by analysts at Brown Brothers Harriman.

US: Q2 GDP is likely to be revised higher - BBH

"Neutral indicators continue to suggest further range trading even though the immediate bias is for a probe lower towards the bottom of the expected sideway trading range of 0.7585/0.7640."

AUD/USD outlook

Analysts at UOB offered a neutral outlook: "Bullish if daily closing above 0.7675. As highlighted in the Chart of the Day update last Friday, the undertone for AUD is positive, but only a clear break above 0.7675 would indicate the start of a bullish phase. For now, as long as 0.7560 is intact, the prospect of a move above 0.7675 still appears to be quite good."

AUD/USD levels

With spot trading at 0.7638, we can see next resistance ahead at 0.7644 (Weekly High), 0.7649 (Daily Classic R1), 0.7651 (Daily High), 0.7655 (Yesterday's High) and 0.7675 (Daily Classic R2). Support below can be found at 0.7629 (Daily Classic PP), 0.7628 (Hourly 20 EMA), 0.7623 (Daily Open), 0.7611 (Hourly 100 SMA) and 0.7609 (Yesterday's Low).