AUD/USD flirts with 0.7700 – fresh 4-month highs, RBA Stevens eyed

A renewed buying interest seen behind the AUD remains intact over the last hour, driving AUD/USD above 0.77 handle, despite the release of below estimates Aus home loans data.

AUD/USD hovers around 4-month highs

Currently, the AUD/USD pair trades +0.29% higher at 0.7697, flirting with fresh 4-month tops reached at 0.7703 last minutes. The AUD/USD pair continues to benefit from persistent broad based US dollar sell-off, which knocks-off the USD index to fresh three-day lows of 95.70.

Moreover, upbeat Australian datasets coupled with stronger gold and copper prices, also added to the renewed optimism surrounding the Aussie. Australia home loans for June stood at 1.2% m/m versus -1.0% prior, while Westpac Consumer Confidence Index for August, climbed 2% m/m versus -3.0% last.

Markets now eagerly await RBA Governor Stevens final speech before his retirement at 1pm AEST, for fresh cues on the AUD/USD pair.

AUD/USD Levels to watch   

The pair finds the immediate resistance at 0.7729 (daily R2) above which gains could be extended to the next hurdle located at 0.7750 (round figure). On the flip side, the immediate support located at 0.7650 (5-DMA). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7620 (10-DMA).