AUD/USD: a bearish bias while traders brace for the Jackson Hole symposium

Currently, AUD/USD is trading at 0.7896, down -0.11% on the day, having posted a daily high at 0.7907 and low at 0.7893.

AUD/USD is consolidated as we head into Tokyo in thin markets while traders are on standby awaiting the speeches at the Kansas City Fed’s annual symposium in Jackson Hole Jackson, Wyoming. Durable goods are also on the cards and could be a catalyst. 

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Although metals have been a supportive factor for the Aussie, oil was under pressure with WTI down -2% at around $47.45 per barrel on supply concerns relating to rising US crude production. Also, for a potential upside in WTI, refineries brace for Hurricane Harvey in south Texas predicted to be a cat 3 tropical storm by the time it hits the shores of the US and possibly headed north onshore. Gold also eased a little to around $1286/oz.

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the short term picture leans the scale towards the downside, as in the 4 hours chart, advances are being contained by a modestly bearish 20 SMA, while the RSI indicator has turned horizontal after reaching its mid-line. "The Momentum indicator advanced up to its mid-line, unable to extend its strength into positive territory. A recovery beyond 0.7930 could favor additional gains, with the next resistance being past week high 0f 0.7962, where selling interest will likely re-surge," Valeria added. 

Analysts at Commerzbank are also bearish but note that moves above the 0.8065 level the 0.8162/66 May 2015 peak and 50% retracement will then be seen. "Above there lies the 0.8295 January 2015 high."