AUD/USD consolidating below 0.777 as USD strengthens

• AUD/USD is in its second day of consolidation after a 120-pip run.
• China’s plans to open its economy keeps the AUD afloat.

The AUD/USD is trading at around 0.7758 virtually unchanged for the day as the pair keeps consolidating since Wednesday.

The Aussie is currently boosted by comments made earlier in the week by China’s President Xi Jinping saying that he “should push free trade” and open up the Chinese economy. The news was well-received by market worldwide and benefitted the Australian dollar which is a major trading partner with China. The bull run in Copper compounded the Aussie strength. The AUD is tightly-linked to the metal’s prices.

On the news front, it is mainly tier-two data which is expected for both currencies as the week is slowly coming to an end. However many speeches from Fed officials are scheduled in the US. Neel Kashkari, voting member on the FOMC is slated to speak at 21:00 GMT and Eric Rosengren, President and CEO of the Federal Reserve Bank of Boston will be speaking at 02:00 GMT on Friday. 

AUD/USD 4-hour chart

The recent strength in the US dollar is currently capping the AUD/USD at the 0.7770 resistance. The market is currently consolidating close to the 200-period on the 4-hour chart. Immediate support lies at 0.7739 and then at the 0.77 figure. Resistance is the 0.7770 level followed by 0.7889 swing low.