AUD/USD slumps to 0.7700 on cross-driven weakness

The AUD/USD pair came under fresh selling pressure in the Asian trades, sending the rate more-than 50-pips lower. However, the spot managed to recover some ground and regained 0.77 handle, despite persistent risk-off market profile.

AUD/USD hovers around daily pivot at 0.7706

Currently, the AUD/USD pair trades modestly flat at 0.7707, quickly reversing a dip to fresh session lows struck at 0.7796 some minutes ago. The AUD/USD pair erased almost entire gains and moves away from fresh 4-month highs, largely on the back of heavy losses witnessed in the AUD/NZD cross, after the Kiwi rallied on just a 25 bos rate cut by the RBNZ.

Further, poor risk environment combined with negative Australian inflation expectations data, also add to the downward pressure on the Aussie. Australia’s consumer inflation expectations for August stood at 3.5% versus prior 3.7%.

Focus now shifts towards the US unemployment claims and import prices data due later in the NA session ahead of a slew of China’s macro releases lined up for release in the Asian morning Friday.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7756 (multi-month tops) above which gains could be extended to the next hurdle located at 0.7700 (round figure). On the flip side, the immediate support located at 0.7668 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7632 (10-DMA).