AUD/USD holds above 50-DMA – Société Générale

AUD/USD is showing signs of potential upside as it consolidates above key technical levels, with bullish momentum building if support at 0.6400 holds, Société Générale's FX analysts note.

Key support at 0.6400 in focus

"AUD/USD has evolved within a tight range since last month. A clear direction has been lacking however signals of a deeper pullback are not yet visible. The pair has established itself above the 50-DMA and is now challenging the upper limit of recent consolidation."

"Defence of recent pivot low at 0.6400 can lead to a larger up move. Next objectives could be located at projections of 0.6630/0.6650 and 0.6720."