AUD/USD: 0.7340-0.7450 ranges likely

AUD/USD: 0.7340-0.7450 ranges likely
FXStreet (Guatemala) – AUD/USD is currently trading at 0.7357 with a high of 0.7417 and a low of 0.7356.

AUD/USD is being contained by the defending resistance from above the 0.7440 mark and has reversed the gains of yesterday’s rally from sightly above current levels at 0.7365.

AUD/USD has been weighed on by lower commodity prices of late, but the catalyst came in broad dollar strength when the jobless claims dropped to its lowest level since Nov 1973. For the rest of the week, we look out for HSBC Manufacturing PMI (Jul) from China and New Home Sales data for June as well as Markit Manufacturing for July from the US. We also have RBA governor Stevens speaking to an Asia finance forum, according to Sean Callow at Westpac Banking Corporation, who said that he will presumably not be offering hints on the Aug policy decision. He continued, on his outlook for the currency:

Westpac’s AUD/USD outlook:

“The commodity price mood remains unhelpful, encouraging positioning for a test of 0.70/0.72 multi-month. However, there is no panic on iron ore for now and Australia’s domestic story is fairly neutral. The Q2 CPI and Stevens speech leave us comfortable calling rates on hold into 2016. Those looking for RBA easing aren’t likely to find much inspiration in the calendar in the week ahead. Look for AUD/ USD to trade mostly 0.7340-0.7450”.
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AUD/USD: 0.7340-0.7450 ranges likely
Source: FXStreet