AUD/USD back above 0.7000 but remains near multi-year lows

FXStreet (Córdoba) - AUD/USD recovered ground after the release of US economic data and following Wall Street opening bell. The pair rose back above 0.7000 and recently reached 0.7029. Currently it trades at 0.7020/25, at the same level it closed yesterday.

AUD/USD sideways, near 6-year lows

During the Asian session price bottomed at 0.6982 after the release of a lower-than-expected GDP reading of the second quarter in Australia. Then bounced modestly but dropped back to test the lows on European hours; the aussie managed to hold on top.

In the US, the ADP employment report was slightly below expectations (+190K vs 200K). Labor market numbers and then the ISM New York index and the factory orders report came below expectations and pushed AUD/USD modestly to the upside, moving modestly away from 0.7000. Despite erasing losses, the pair still remains under pressure.

Key resistance at 0.7100?

If AUD/USD manages to reach levels higher than 0.7100 it would be climbing above the 20-SMA in four charts, above a downtrend line coming from last week highs and on top of the area that capped the decline during August located at 0.7085. A consolidation on top of 0.7100 could open the doors for a bullish correction or at least remove some strength out of the US dollar, below the bearish pressure is likely to persist.