AUD/USD: reaching for the 0.77 handle and beyond?

AUD/USD is currently on the way to the 0.77 handle from 0.7490 lows of 30th August business on renewed weakness in the greenback and in line Q2 GDP for Australia.

As analysts at TD Securities explained that Aussie Q2 Real GDP was at +0.5%/qtr, a "ho-hum print" as they put it compared with pumped-up expectations after yesterday’s strong Government spending data. "Australian annual GDP growth rose from 3.0% to 3.3%/yr , the highest annual growth rate in four years," adding,  "A fresh record high for Port Hedland iron ore exports at 42.9t along with the 6% rise in prices during August provides a positive for Q3 trade." 

At the same time, the greenback is softening up as we progress through the week on the back of the pending FOMC meeting creeping ever closer and markets starting to discount a rate hike from the Fed based on disappointing data of late.

AUD/USD levels

Spot is presently trading at 0.7670, and next resistance can be seen at 0.7671 (Hourly 20 EMA), 0.7686 (Weekly Classic R2), 0.7687 (Daily Open), 0.7688 (Weekly High) and 0.7690 (Yesterday's High). Next support to the downside can be found at 0.7653 (Daily Classic PP), 0.7651 (Daily Low), 0.7629 (Weekly Classic R1), 0.7616 (Daily Classic S1) and 0.7606 (Hourly 100 SMA).