AUD/USD jumps toward 0.7700

AUD/USD  initially dropped to 0.7602 after the release of Janet Yellen speech but then bounced sharply with a general decline of the US dollar across the board. The pair peaked at 0.7691, hitting the highest levels in a week. Then it pulled back and it was trading at 0.7670.

Yellen said that the case for another rate hike has strengthened but despite those words, market seemed unconvinced about a hike in September. The CME group’s FedWatch gave a probability of a 18% of a hike at the next meeting, down from 21.0% from yesterday.

Gold and crude oil soared during the last minutes giving more support to commodity currencies including the aussie (AUD).

AUD/USD technical levels

To the upside, resistance level might be located at 0.7690/95 (daily high), followed by 0.7725 (Aug 18 high) and 0.7755/60 (Aug high). On the opposite direction, support now could be located at 0.7655 (Aug 23 high), 07605 (daily low) and 0.7580 (weekly low).