AUD/USD looks vulnerable below 0.7860, 6-week lows

Having failed the recovery attempt in Asia, the AUD/USD pair continues to consolidate near six-week lows of 0.7860, as we progress towards the European opening bells.

AUD/USD awaits key catalysts

The spot keeps the offered tone intact and trades unmotivated below 0.79 handle, as broad based US dollar strength, in the wake of Yellen’s hawkish comments and Trump’s tax overhaul plans, continues to outweigh positive sentiment driven by higher oil and copper prices.

Meanwhile, the Aussie also shrugged-off a surge in the Chinese industrial profits, as markets continue to track the USD price-action, with the monetary policy divergence back in play amid a hawkish Fed and RBA still concerned over rising household debt.

Later today, the pair will take cues from the US macro releases and Fedspeaks for near-term trading opportunities.

AUD/USD Technical View    

Jim Langlands at FX Charts, explains, “the Aud has seen a decent slide, reaching 0.7858 under pressure from the stronger US$. The short term momentum indicators suggest the current move may be a little overdone although the dailies remain bearish. Sell AudUsd @ 0.7910. SL @ 0.7960, TP @ 0.7815.”