AUD/USD: in neutral ahead of the Jackson Hole, probing the 0.79 handle

Currently, AUD/USD is trading at 0.7904, up 0.00% on the day, having posted a daily high at 0.7910 and low at 0.7904.

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AUD drifted higher overnight but within a narrow range between 0.7882 and 0.7913 vs the dollar as markets await the Jackson Hole. A more risk averse day in the US session was due to Trump’s latest comments in Phoenix within a fickle market place. Stocks US, US bond yields, and the dollar were all lower as a result.

The Aussie remains on a neutral footing for today while a lack of domestic data leaves traders focussed on Tokyo and China before Yellen likely repeats what she has already testified to Congress in last month's testimony.

Here's Why Dollar is On Back Foot Before Jackson Hole

AUD/USD 1-3 month: 

Analysts at Westpac recently argued that if the RBA remains firmly on hold, as we expect, and the US dollar rises on tighter Fed policy, then AUD/USD could fall to 0.76 by year end. 

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that having failed to regain the upside momentum earlier this week, the pair is back to neutral, with an increasing bearish potential according to technical readings in the 4 hours chart. 

"The price remains below an anyway horizontal 20 SMA, currently around 0.7930, while technical indicators remain within negative territory, but lack directional strength. A strong static support comes at 0.7870, with a break below it exposing this month low of 0.7807," explained Bednarik.