AUD/USD – Offered at trend line resistance

The bullish tone in AUD/USD once again ran out of steam around technical hurdle at 0.7576 – rising trend line coming from May 30 low and July 27 low.

Hovers around 50-DMA

The currency pair now trades around daily 50 moving average level of 0.7562. Aussie failed to strengthen despite upbeat data release in Australia, which showed an 11.3% m/m rise in Building approvals. This was way above expected gain of 1.2%.

Moreover, the rejection at trend line resistance in Asia goes well with the fact that treasury yields turned green. Furthermore, moderate weakness in gold is keeping the Aussie under pressure as well.

AUD/USD Technical Levels

Acceptance above rising trend line level of 0.7576 on larger timeframe charts could force shorts to unwind positions, leading to a re-test of 0.7611 (10-DMA). A violation there could yield 0.7692 (Friday’s high). On the other hand, breakdown of Asian session low of 0.7559 would expose 0.7525 (Friday’s low), under which a major support is seen at 0.7497 (100-DMA).