The parity failed to maintain a recovery from the one-month low at the past week and paused before the 0.80 psychological level with the strong recovery of the US Dollar overnight. The pair is again retreating close to the 0.7880 horizontal level as investors continue to close down their USD positions with Fed Chairman Yellen’s anticipated crackdown in the Jackson Hole Symposium.
In addition, the slight deterioration in investor appetite following US President Donald Trump‘s threat of the government’s shuttering over Mexico’s border wall funding provided additional stimulus to the USD’s safe haven over the AUD.
Meanwhile, the commodity market, and especially the weaker outlook around copper, has supported the commodity-linked AUD and has failed to pause the second session slide over parity.
In the short term, investors will receive hints from US new housing sales data. However, the focus of investors will remain on the very important Jackson Hole Symposium.
The AUD / USD pair is currently trading at 0.7888 with a loss of 0.30%.
Significant technical levels for AUD / USD
0.7830-25 (horizontal level), 0.7800 (psychological level) support, 0.7925-30 region, 0.7950-60 region and 0.80 (psychological level) parity levels.