Ella 
In Asia on Thursday, AUD/USD struggled to extend this week’s gains, retracing a few points from a one-and-a-half-week high hit in early trade. AUD/USD is currently trading around 0.6475, down less than 0.10% on the day.
Meanwhile, fears of deteriorating economic conditions in China and mounting bets that the Reserve Bank of Australia (RBA) will keep rates on hold again in September continue to be bearish for the Australian dollar. On the other hand, the US dollar (USD) consolidated overnight losses from its highest level in more than two months, providing some support for AUD/USD.
From a technical point of view, AUD/USD broke out of a downtrend channel extended from the monthly high overnight, which constitutes a new trigger for the bulls. Moreover, the hourly chart shows that oscillators remain in positive territory, supporting the prospect of further gains. That said, it would still be prudent to wait for sustained AUD/USD strength to break above the 0.6500 psychological level before placing fresh bearish bets.
The aforementioned support level confluence with the 100-period simple moving average (SMA) on the 4-hour chart should form a key point. Some follow-through buying should pave the way for the near-term extension of the rebound from yearly lows hit last week and push the AUD/USD pair further towards the 0.6530 area, onwards towards the 0.6570-0.6575 level and then the 0.6600 round figure.
On the downside, the $0.6455-0.6450 area now appears to act as short-term support, followed by the $0.6425-0.6420 area and the $0.6400 round-figure mark. If AUD/USD breaks below this level, AUD/USD will fall to the yearly low around 0.6365, and eventually could fall to the 0.6300 mark, followed by a bearish double top chart pattern around the 0.6900 mark.
