AUD/USD: Selling pressure intensifies, eyes 20-DMA

The bid tone behind the USD gathered pace in the last hour, accentuating the downside in the AUD/USD pair.

AUD/USD stalls overnight recovery

Currently, the AUD/USD pair drops -0.51% to 0.7645, meandering near session lows struck at 0.7641 last minutes. The major ended the overnight recovery mode and came under renewed selling pressure in the Asian morning, having reversed yesterday’s entire rally to 0.7723 levels.

The sell-off in the Aussie is mainly driven by weaker commodities’ prices, while a bout of profit-taking after the previous upsurge, also cannot be ruled out. Further, the latest story from the Australian press, citing that Australia’s budget could be hit by $ 100bn if the budget predictions go wrong, also collaborated to the downbeat sentiment around the spot.

Focus now shifts towards next week macro updates from both continents, including the Aus capex and US GDP data, in absence of relevant fundamental drivers today.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7700 (round figure) above which gains could be extended to the next hurdle located at 0.7725/27 (Aug 12 high/ daily R1). On the flip side, the immediate support located at 0.7633/0.7600 (20-DMA/ round figure). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7558 (50-DMA).