Despite a drop from a multi-month high, the AUD/USD remains highly bid at 0.6800.

VOT Research Desk

On Thursday, the AUD/USD pair gains momentum for the third day in a row and keeps a bid tone throughout the first part of the European session.

During the first half of the European session, however, the pair pares back some of its intraday gains and falls to the area of 0.6815 and 0.6810.

This could act as a brake on any upward market movement and weigh on the AUD/USD pair. However, a sustained break of the horizontal barrier around 0.6765 and an underlying unfavorable mood toward the USD raise the possibility of further advances.

As a result, any significant decline below the level of 0.6800 may still be viewed as a buying opportunity and is more likely to be restricted. Now, market investors are anticipating Thursday’s US economic calendar.

Following the release of the ISM Manufacturing PMI and Core PCE Price Index, the Fed’s preferred inflation gauge.

This will affect the USD price dynamics and provide the AUD/USD pair some significant push, coupled with US bond yields and the general risk mood.