Market focus turns to US Q1 GDP data later at 1230 GMT
AUD/USD remains firm on the day as the aussie is holding its own after a brief dip below the 0.7000 handle in trading yesterday. Improved terms of trade data is part of the reason helping the aussie today but I reckon at this stage, it's all about positioning now and the earlier Australian data is just helping traders with some short covering/profit taking.
Sellers remain in control and will look towards another potential test of the figure level if US data provides a more upbeat picture for the dollar today. As mentioned before, I reckon key stops will only be triggered on a move below 0.6980 so watch out for any runs towards that level in the session ahead.
If price does break below that, we could likely see a sharper fall in the pair towards 0.6900 but at the same time, be mindful that sellers may be wary of further short covering under the 0.7000 as we approach the weekend.
On the flip side, if US data does disappoint by quite a bit, the dollar should sell off and that will help AUD/USD move higher. Key daily swing region around 0.7043 and the 100-hour MA @ 0.7063 will be the two levels to watch out for before further offers rest at 0.7100-10 alongside the 200-hour MA.
Should that be the case, traders will also have to balance out the above with weaker global growth sentiment that could promote a more risk-off session later.
