FxWirePro: AUD/USD consolidates post-Fed gains, US Q2 GDP eyed for further impetus

Chart - Courtesy Trading View 

AUD/USD was trading 0.17% higher on the day at 0.7000 at around 06:10 GMT. The pair is extending gains after close above 55-EMA in the previous session.

Price action is approaching daily cloud base resistance at 0.7030, decisive break above will fuel more gains.

Aussie largely ignores softer than expected Australia Retail Sales, focus remains on US Q2 GDP data for impetus.

Australia’s preliminary Retail Sales for June eased to 0.2% monthly growth compared to the market forecasts of 0.5% and 0.9% in previous readings. 

Details of the report showed Q2 Import Price Index arrived better-than-expected 1.9%, while the Export Price Index came in at 10.7% compared to 19.7% and 18.0% forecasts respectively.

A preliminary estimate for the US GDP data is 8% against the prior release of 8.3% on a quarterly basis. While the annualized figure is expected to improve to 0.4% vs. -1.6% prior.

The Federal Reserve's consecutive rate hike by 75 bps has failed to support the US dollar, which remains depressed after Jerome Powell's comments, supporting the pair higher.

Major Support Levels: 

S1: 0.6967 (55-EMA)

S2: 0.6902 (21-EMA)

Major Resistance Levels: 

R1: 0.7030 (Cloud base)

R2: 0.7062 (110-EMA)

Summary: AUD/USD poised for further upside. The pair is on track to test cloud resistance. Decisive break into cloud will fuel further gains.