- AUD/USD drops further after US data, amid a stronger US Dollar.
- Spot finds support at the 0.7590/0.7600 area but the intraday tone still points to the downside.
The AUD/SUD pair managed to rise back above 0.7600 during the last hours. The Aussie bottomed at 0.7590 and then rebounded rising to 0.7610. It is down 40 pips for the day, on the back of a stronger US Dollar. The greenback is among the strongest currencies rising particularly against emerging market and commodity currencies.
Earlier today, the RBA left as expected, the policy rate at 1.5%. The statement contained positive visions about the Australian economy and the global outlook. The Aussie weakened modestly after the RBA meeting.
In the US, data from the service sector came in better-than-expected and sent the greenback higher. After hitting fresh highs it pulled back favoring a consolidation of AUD/USD near the 0.7600 area.
AUD/USD Technical outlook
The pair found support around 0.7600 but the intraday trend still points to the downside, as the corrective mode still remains intact. Yesterday AUD/USD hit the highest level in more than a month at 0.7666 before starting to move to the downside.
Below 0.7590, the bearish momentum could rise; the next support area might lie at 0.7545 and 0.7500. On the upside, immediate resistance is seen at 0.7520 and above at 0.7635 (downtrend line from yesterday’s top). A break above 0.7635 could signal the end of the correction, exposing 0.7665.
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