AUD/USD Price Analysis: Pair struggles to hold ground, trades around 0.6380

• AUD/USD consolidates after Australia’s upbeat GDP data.
• Momentum indicators suggest that the pair remains to be bearish in the short term.
• The region near 0.6350 psychological level emerges as the immediate support.

AUD/USD extends its losses, trading lower around 0.6380 during the Asian session on Wednesday. The pair experiences downward pressure due to the firmer US Dollar (USD) as investors appear to be increasingly accepting the reduced likelihood of an interest rate hike by the US Federal Reserve (Fed) during the upcoming September policy meeting.

However, Australia’s upbeat Gross Domestic Product (GDP) data is providing minor support to the AUD/USD pair. As said, GDP (MoM) showed a growth of 0.4% in the second quarter, exceeding the expectations of 0.3%. The index grew by 0.2% in the first quarter. GDP (YoY) for the said quarter reduced to a growth of 2.1% from the previous reading of 2.3%. This was expected to grow at a rate of 1.7%.

The Moving Average Convergence Divergence (MACD) line lies below the centerline but remains above the signal line. This suggests that the recent momentum is relatively subdued.

The pair could meet the immediate support around the weekly low at 0.6357 lined up with the 0.6350 psychological level.

On the upside, the pair could face a challenge around the 0.6400 psychological level. A firm break above the latter could open the doors for the AUD/USD pair to explore the region around the 21-day Exponential Moving Average (EMA) at 0.6467 aligned to 23.6% Fibonacci retracement at 0.6484.

The 14-day Relative Strength Index (RSI) stays below 50, which suggests the AUD/USD pair remains to be bearish in the short term.

AUD/USD: Daily Chart