AUD/USD rebounds modestly from five-week lows, remains under 0.7600

Australian dollar among the worst performers on Tuesday after RBA meeting.
US dollar up versus G10 currencies, DXY at monthly highs above 91.00.

Matías Salord FXStreet

The AUD/USD extended the decline and bottomed at 0.7562 during the American session, hitting the lowest level since December 28. It then rebounded, finding resistance at the 0.7590 area. It remains under pressure, as the US dollar remains the top performer.

Dollar outperforms versus G10, down against EMs

Equity prices in Wall Street are rising sharply. The Dow Jones rises by 2.01% and the Nasdaq 1.56%. US yields are higher for the day but off highs. The 10-year yields peaked at 1.11%, the highest in two weeks before pulling back modestly.

The US dollar is sharply up versus its G10 rivals. The DXY stands at 91.20, up 0.25% about to post the strongest close since December 1. The greenback is falling versus emerging market currencies that are on-demand amid risk appetite.

The Australian dollar is holding onto daily losses across the board, affected by the Reserve Bank of Australia meeting. The decline in gold, silver and AUD/NZD added weakens to the Aussie.

“While we were skeptical, some analysts were looking for some sort of tapering message. Instead, the RBA delivered quite the opposite. We suspect Australian policymakers are watching the apparent slowdown in China’s economy as closely as we are and is taking no chances with any sort of premature withdrawal of accommodation”, explained analysts at Brown Brother Harriman. The RBA kept rates unchanged and extended its QE beyond April, increasing the program by AUD100 bln.

RBA Governor Lowe will speak on Wednesday and has to testify to parliament on Friday. Also con Friday, the RBA will release its quarterly Statement on Monetary Policy.

Technical levels

AUD/USD

Overview
Today last price	0.7587
Today Daily Change	-0.0033
Today Daily Change %	-0.43
Today daily open	0.762

Trends
Daily SMA20	0.7724
Daily SMA50	0.76
Daily SMA100	0.7389
Daily SMA200	0.7165

Levels
Previous Daily High	0.7663
Previous Daily Low	0.7606
Previous Weekly High	0.7764
Previous Weekly Low	0.7592
Previous Monthly High	0.782
Previous Monthly Low	0.7592
Daily Fibonacci 38.2%	0.7628
Daily Fibonacci 61.8%	0.7641
Daily Pivot Point S1	0.7596
Daily Pivot Point S2	0.7573
Daily Pivot Point S3	0.7539
Daily Pivot Point R1	0.7653
Daily Pivot Point R2	0.7687
Daily Pivot Point R3	0.7711

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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