AUD/USD sits near monthly high, around 0.7000 mark as traders await US GDP report

• AUD/USD is seen consolidating near a multi-week high set earlier this Thursday.
• The post-FOMC USD selling bias continued lending some support to spot prices.
• Recession fears hold back bulls from placing fresh bets ahead of the US Q2 GDP.

The AUD/USD pair is extending its sideways consolidative price moves and remains confined in a range around the 0.7000 psychological mark through the early European session.

The US dollar extends the previous day's downfall led by less hawkish remarks by Fed Chair Jerome Powell and slides to its lowest level since July 6. Powell signalled that another large adjustment could be coming at the next policy meeting in September, but it would be dependent on the incoming data.

Furthermore, the Fed officials also acknowledged that economic indicators have softened and noted signs of a slowdown. This suggests that the US central bank would slow the pace of its interest rate hikes, which continued weighing on the greenback and is seen as a key factor lending some support to the AUD/USD pair.

Investors, however, remain concerned about the possibility of an economic downturn and have refrained from taking an aggressive risk. This seems to hold back traders from placing fresh bullish bets around the risk-sensitive aussie and capping gains for the AUD/USD pair, which, remains below a six-week high touched earlier this Thursday.

Moving forward, Thursday's focus will remain on the release of the Advance US Q2 GDP report, due later during the early North American session. The data would play a key role in influencing the USD price dynamics. This, along with the broader market risk sentiment, should provide a fresh impetus to the AUD/USD pair.

Technical levels to watch