AUD/USD recovery faltered around 0.7790
- The Aussie Dollar lost upside momentum just below 0.7800.
- The pair’s rally appears capped by the 200-day sma near 0.7820.
- RBA minutes failed to surprise markets earlier today.
The Aussie Dollar has given away its earlier gains vs. the greenback on Tuesday and is now prompting AUD/USD to retreat to the 0.7780 area amidst a narrow trading range.
AUD/USD well supported around 0.7650
The pair is looking to record its fourth consecutive daily advance today, extending the up move from yearly lows in the mid-0.7600s seen in late March. The correction higher, however, appears to have run out of steam in the 0.7820 region (April 13), where converges the critical 200-day sma.
The rally in AUD has been on the back of better prices in the commodity-complex, easing concerns over the US-China trade war and recent Chinese GDP figures, which showed the Asian economy expanded at an annualized 6.8% during Q1, matching initial estimates.
Earlier in the session, the RBA published its minutes from the latest monetary meeting, although the tone remained largely unchanged.
On the positioning front, AUD speculative net shorts rose to the highest level since January 2 in the week ended on April 10, as shown by the latest CFTC report.
AUD/USD levels to watch
At the moment the pair is losing 0.05% at 0.7777 and a breakdown of 0.7735 (low Apr.12) would open the door to 0.7716 (21-day sma) and finally 0.7641 (2018 low Mar.29). On the other hand, the next resistance aligns at 0.7811 (high Apr.13) seconded by 0.7817 (200-day sma) and then 0.7916 (high Mar.14).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
