FXStreet (Mumbai) - The AUD/USD pair is seen trading around a flat line in the last hours, with the AUD meeting fresh supply on over every attempt to 0.72 handle.
AUD/USD capped below 0.7200
Currently, the AUD/USD pair trades flat at 0.7188, moving away from three-week highs reached at 0.7282 in the last week. The Aussie halted its corrective slide from multi-week peaks near 0.7180 region and now fights hard to regain 0.72 handle and extend further as markets continue to capitalize on broad back US dollar weakness, triggered by the dovish FOMC statement.
The Australian dollar dropped from multi-week tops last week after a bearish mood was brought in by the Reserve Bank of Australia (RBA) Governor Stevens comments on Friday while risk-aversion spurred by the Fed verdict also capped further upside in the Aussie. Over the week the Australian dollar gained 1.38% to 0.7189.
RBA Stevens told parliament on Friday, "More recently, the significant decline in the exchange rate is starting to have more discernible effects on the pattern of spending and production."
Looking ahead, markets look forward to the Chinese manufacturing PMI and a host of key US economic data due for release later in the week for further direction on the AUD/USD pair.
AUD/USD Levels to watch
The pair has an immediate resistance at 0.7253 (Aug 25 High) levels, above which gains could be extended to 0.7282 (Sept 18 High) levels. On the flip side, support is seen at 0.7180 (Today’s Low) levels from here it to 0.7133 (Sept 17 Low).
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