AUD/USD struggling near two-month lows ahead of US GDP

The AUD/USD pair now seems to have entered a bearish consolidation phase and was seen oscillating within a 15-20 pips narrow trading range. 

The pair remained under some selling pressure for the fourth consecutive session on Thursday and dropped to test the 0.78 handle, lowest since July 18, amid persistent greenback buying interest. 

With the key US Dollar Index retreating a bit, after hitting a one-month high, a modest recovery in commodity prices, especially copper, helped limit further losses, at least for the time being.

However, with Trump reflation trade coming back in action, growing prospects for additional Fed rate hike move in 2017 and rallying US Treasury bond yields might now keep a lid on any immediate sharp up-move for higher-yielding currencies - like the Aussie.

Today's US economic docket, with key focus on the final revision of GDP growth numbers, would now be looked upon for some fresh impetus.

   •  AUD/USD risks a breakdown of the 0.7800 handle – UOB

Technical levels to watch

Bears would be eyeing for a clear break through the 0.7800 handle, below which the pair is likely to accelerate the fall towards 100-day SMA support near the 0.7760 region.

On the upside, any recovery attempt beyond 0.7835-40 zone now seems to confront immediate resistance near the 0.7865-70 region, above which the pair could attempt a move towards reclaiming the 0.7900 handle.