AUD/USD bulls taking charge, targetting 0.77 handle

AUD/USD has perked up and come into focus in the markets as it tackles the bears protecting the 0.77 handle and starts to consolidate with support above the midway point of the 0.76 handle.

Aussie GDP Q2 wrap up: solid 0.5% q/q - ANZ

AUD/USD has seen some action this week with the RBA, stevens' last meeting with Lowe coming through to take the position on the 12th September, in line Q2 GDP and today's trade balance due for both Australia and China. Meanwhile we are starting to see a softer greenback as we plod through the start of September, eagerly awaiting the FOMC showdown at the end of this month while best are starting to diminish that the Fed can justify a rate hike this soon given the recent run of poor data since the Jackson Hole specifically. However, today was a little better with a modestly bullish beige book and record breaking JOLTS. 

"The Fed’s Beige Book of regional economic conditions repeated its “modest-moderate” mantra regarding economic expansion, and expected that trend to continue.

US JOLTS job openings rose from 5643 to 5871 (vs 5630 expected). This is a solid result and a big relief for Fed Chair Yellen. Job openings jumped around 230k to 5871 – a new all-time high for this survey. As for the job openings rate it was solid too, but below prior cycle highs," explained analysts at Westpac. 

A glance at the RBA goveneors to be's approach: 

RBA's new Governor Lowe: Need to move beyond a focus on credit only

FXStreet techncial outlook: bullish bias

Valeria Bednarik, chief analyst at FXStreet offered an outlookon on the 4 hours chart, "The risk remains towards the upside, as the 20 SMA continued heading sharply higher below the current level, whilst technical indicators have recovered modestly within overbought territory, following a modest downward correction. At this point, the pair needs to settle above the 0.7700 figure to be able to extend its gains, with scope then to retest the year high around 0.7830."

AUD/USD levels

With spot trading at 0.7668, we can see next resistance ahead at 0.7672 (Hourly 20 EMA), 0.7673 (Daily Open), 0.7680 (Daily High), 0.7686 (Weekly Classic R2) and 0.7688 (Weekly High). Support below can be found at 0.7664 (Daily Low), 0.7653 (Daily Classic PP), 0.7651 (Yesterday's Low), 0.7629 (Weekly Classic R1) and 0.7616 (Daily Classic S1). Looking to candlestick patterns, we can see a Doji formation on the 1-hour chart and a Hammer formation on the 4-hour chart.