AUD/USD – Corrective rally stuck at 38.2% Fibo

Corrective move in AUD/USD is failing to cut through 0.7526 level, which is the 38.2% Fibo retracement of the up move from 0.7148 (May 30 low) to 0.7760 (Aug 11 high).

Aussie data ignored

Data released in Australia showed private sector credit rose at an annualized rate of 6% in July compared to the expected growth of 6.1%. However, markets turned a blind eye towards the data in a similar way as they ignored stellar construction figures released yesterday.

Moreover, the focus remains on Fed after Yellen talked up Fed rate hike bets on Friday. The currency pair remains at the mercy of the overall demand for the US dollars ahead of the US ADP private sector employment figure. Comments from RBA’s Debelle would be watched out by markets as well.

AUD/USD Technical Levels

Acceptance above 0.7526 (38.2% of 0.7148-0.7760) would open doors for 0.7561 (50-DMA) and 0.76 levels. On the other side, breach of support at 0.7495 (100-DMA) would expose 0.7454 (50% of 0.7148-0.7760) and 0.74 handle.