AUD/USD retreats to 0.7670

AUD/USD  is up for the day on the back of a weak US dollar but it moved sharply off daily highs during the last hours. After rising to test last week highs it reversed and dropped to 0.7670, fresh daily low.

Volatile day

Initially, a decline of the US dollar in the market boosted the AUD/USD pair to 0.7747, hitting the highest level in 6-days, after the release of US CPI data. But then, New York Fed President Dudley opened the doors to a September rate hike and pushed the dollar to the upside in the market.

The pair fell to 0.7670 erasing all gains and then rebounded. Currently, it trades slightly below 0.7700, up less than 30 pips for the day. The bias continues to point to the upside but the bullish momentum eased with the recent slide.

AUD/USD technical levels

To the upside, resistance levels might be located at 0.7705/10 (Aug 9 low), 0.7725 (Aug 11 & 12 high) and 0.7745/50 (daily high). On the opposite direction, support could be seen at 0.7670 (daily low), 0.7640 (Aug 15 low) and 0.7615 (Aug 1 low).