AUD/USD rebounds back above 0.7150 and erases losses

  • Aussie strengthens during the US session and rises across the board.
  • US data: Industrial production contracts unexpectedly. 
  • Important Chinese economic data due on Wednesday. 

The AUD/USD pair recovered ground during the American session and erased daily losses, rising back to the 0.7170/80 area. 

AUD recovers, back to pre-RBA minutes level 

The Aussie dropped during the Asian session following the release of the RBA meeting minutes. The central bank mentioned that the likelihood of a near-term rate hike was low. After bottoming at 0.7138 it moved between 0.7140 and 0.7150 for hours until it broke to the upside. It erased all losses and at the moment trades at 0.7170, at the same level it closed yesterday.

Data from the US came in below expectations. Industrial Production fell 0.1% in March against the 0.2% expansion expected. On Wednesday,  critical Chinese economic data is due that could have a large impact on the Aussie. The reports include retail sales, industrial production, and GDP. 

Technical outlook

The pair continues to move in an ascendant channel holding the bullish bias. Recently broke above 0.7150 and climbed to 0.7178 approaching weekly highs. It is back in the 0.7180 area; to the upside, the next strong resistance is 0.7200. 

The key level to the downside, is 0.7130/35, an uptrend line that if broken could lead to more losses, exposing 0.7120 and 0.7105

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD trims early gains, dangerously close to 1.1200

The positive tone of the pair fades in the American afternoon as demand for the dollar resumes, despite softer-than-expected US data. All eyes on the Fed this week.


GBP/USD extends decline, pierces 1.2550

Despite moving in slow-motion, GBP/USD decline is continuous with the pair trading at levels last seen in January, amid political uncertainty weighing on Sterling.


USD/JPY remains directionless above mid-108s on Monday

The USD/JPY pair is struggling to make a decisive move in either direction on Monday as the slightly upbeat market sentiment doesn't allow the safe-haven JPY to gather strength.


Gold remains on track to close with small losses below $1340

The XAU/USD pair, which closed higher on the weekly chart for the fourth straight time last week, is fluctuating in a relatively tight range on Monday amid a lack of significant fundamental drivers that had a lasting impact on the greenback's market valuation or the risk perception.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more