AUD/USD consolidating losses, focus on US economic releases

The AUD/USD pair maintained its offered tone and remains within striking distance of 0.7600 handle ahead of US economic releases.

Currently trading near session low around 0.7615-20 band, the pair on Wednesday failed to extend upbeat Australian CPI-led bullish momentum and faced rejection above 0.7700 handle. The pair subsequently erased majority of its daily gains as the US Dollar attracted fresh buying interest following the better-than-expected release of goods trade balance and services PMI from the US.

On Thursday, persistent risk-off sentiment in global equity markets is weighing on riskier assets and driving higher-yielding currencies - like Aussie, lower. Furthermore, growing expectations of an imminent Fed rate-hike decision at its December meeting has been supportive of the ongoing bullish sentiment surrounding the greenback and is exerting selling pressure around the major on Thursday.

Looking ahead, today's US economic releases that include - monthly durable goods orders and pending home sales data, would be looked upon for trading opportunities, while Friday's US GDP print would be the next big fundamental trigger driving the pair in the near-term.

Technical levels to watch

Slobodan Drvenica, Information & Analysis Manager at Windsor Brokers Ltd., notes, "Wednesday’s daily candle with very long upper shadow weighs on near-term structure, as today’s strong bearish extension shows the pair on track for daily close in red."

"Fresh weakness cracked important support at 0.7618 (daily Kijun-sen line), with close below here to open way for retest of strong 0.7585 base, which lies near another strong support (Fibo 61.8% of 0.7504/0.7732 ascend at 0.7591)."

"Daily 10SMA offers initial support at 0.7636, while daily Tenkan-sen line, which lies at 0.7655 (just above today’s high at 0.7650), marks the upper breakpoint."