As such, price is now looking towards a test of support around 0.6911 next with the 0.6900 also offering an area for buyers to lean on as we look to wrap up the week.
The dollar is holding steadier on the day as we see AUD/USD trade at session lows now but the key focus is still on the advanced US Q2 GDP data later today.
That will prove to be the make-or-break for the dollar in the coming session. In the near-term, a massive beat or miss may produce some short-term volatility ahead of the FOMC meeting next week but in my view, it will do little to change the fact that it will still be a 25 bps rate cut on 31 July.
I reckon the data will have more significant repercussions (alongside other future US data) towards the September meeting instead in the bigger picture.
That said, be wary of the levels mentioned above for AUD/USD as a further break beyond that will see price extend lower towards the May to June lows of 0.6832-65. As for buyers, a firm break back above the broken trendline support will be a good start to regain some control ahead of the Fed next week.
