AUD/USD holds onto 0.78 after rebound fueled by Greenback sell-off

• AUD/USD gains on Dollar selling.
• AUD still a weak pair with lacking macros.

AUD/USD is holding steady near 0.7840 in the overnight session following gains brought on by Dollar selling in Thursday's trading.

With little macro of note on the calendar this week, the pair has seen itself trade at the whim of market sentiment, with swings in risk appetite sending the pair up and back down again, stuck in a volatile consolidation zone for several weeks. Thursday's action saw the pair regain ground previously lost to the Greenback in market-wide Dollar bidding.

The economic outlook for Australia is muddied with data and key figures continuing to come out mixed and consistently on the disappointing side, which leaves the Reserve Bank of Australia (RBA) in the unenviable position of tending to an economy that is widely expected to continue lagging behind global trends for years to come. With central banks around the world preparing to raise rates in the face of growing inflation, the RBA is stuck in a holding pattern as they wait for hopeful signs of continued growth within the Australian economy.

AUD/USD Technicals

The pair is still holding above the 200-day SMA currently at 0.7774, but the latest rejection from 0.7988 prices in a lower high for the pair, and price action is increasingly bearish looking forward. Current support is priced in at 0.7790 and 0.7758, while resistance rests above from 0.7888 to 0.7966.