AUD/USD – Bulls demoralized after Turnbull comments

Dovish comments from Australian PM Turnbull demoralized bulls, thus pushing AUD/USD back below 0.76 levels, although broad based USD weakness is restricting losses.

Trades around 23.6% Fibo

Despite the retreat from the high of 0.7614, the spot has managed to cling on to 0.7597 (23.6% of 0.6827-0.7835). PM Turnbull was on the wires stating the interest rates, despite being at record low of 1.5%, are still relatively elevated.

The comments took wind out of bulls, however, sentiment around the US dollar is bearish and that is limiting the losses in the pair.  The Chinese services PMI release failed to have any major impact on the AUD/USD pair.

AUD/USD Technical Levels

A breakdown of support at 0.7571 (61.8% of 0.7835-0.7145) would expose 0.7545 (July 4 high), under which the spot could target 0.7500 (zero figure). On the other hand, breach of resistance at 0.7614 (daily high) could yield move higher to 0.7676 (July 15 high), although a major resistance is seen directly at 0.7835 (April 21 high).