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AUD/USD stalls post-Yellen recovery, wavers above 0.7000

FXStreet (Mumbai) - The AUD/USD pair halted its recovery from Yellen’s speech-led gap down opening and fell back in the red zone, now hovering just ahead of 0.70 handle.

AUD/USD clinging to 0.70 handle

Currently, the AUD/USD pair trades -0.27% lower at 0.7007, facing stiff hurdle at 0.7023 levels. The Aussie attempts to fill in the bearish gap witnessed, on the back of a sudden bout of USD buying after the Fed Chairwoman Yellen’s in her latest speech, reinforced her views of a rate hike this year.

Fed’s Yellen noted that US economic outlook ‘generally appears solid’ and that rate lift-off remains on track for this year, although the timing for such hike depends on the overall economic propsects.

However, the AUD/USD pair failed to extend its recovery further and keeps losses above 0.70 barrier as the greenback continues to march higher against its major competitors.

Meanwhile, markets turn their focus towards the upcoming US GDP data due later in the US session as the Asian calendar remains data-dry, with nothing relevant on the cards.

AUD/USD Levels to watch

The pair has an immediate resistance at 0.7042 (Sept 8 High) levels, above which gains could be extended to 0.7096 (Sept 23 High) levels. On the flip side, support is seen at 0.6984 (Sept 23 Low) levels from here it to 0.6943 (Sept 10 Low).

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