“¢ Resurgent USD demand keeps a lid on the overnight strong upsurge.
“¢ Disappointing Aussie current account data prompts some weakness.
“¢ RBA status-quo/cautious comments add to the downward pressure.
The AUD/USD pair traded with a mild negative bias on Tuesday and is currently placed at the lower end of its daily trading range, around the 0.7630 region.
The pair extended overnight retracement from the vicinity of 100-day SMA hurdle and was weighed down by resurgent greenback demand. Despite escalating trade tensions, the US Dollar regained positive traction and was seen oscillating around the 94 handle.
The Australian Dollar was further weighed down by disappointing Aussie quarterly current account data, coming in to show a deficit of $10.5 billion in Q1 as compared to -$14.7 billion in Q4 and -$9.95 billion expected.
Meanwhile, the latest RBA monetary policy update, wherein the central bank kept interest rates unchanged at a record low level of 1.5% and sounded cautious on the labor market, wage growth, and household debt, also did little to provide any fresh impetus.
Today’s modest retracement could also be attributed to some profit-taking, especially after the pair’s strong upsurge of over the past two-trading session and from closer to a technically important moving average resistance.
Moving ahead, traders now look forward to the release of US ISM non-manufacturing PMI in order to grab some short-term trading opportunities later during the early North-American session.
Technical levels to watch
Any subsequent retracement is likely to find support near 50-day SMA, around the 0.7605-0.7600 region, below which the pair could accelerate the slide towards its next support near the 0.7580-75 zone.
On the flip side, the 0.7670 region (100-DMA) might continue to act as an immediate strong hurdle, which if cleared could assist the pair to move back above the 0.7700 handle and aim towards testing the 0.7740 supply zone.
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