AUD/USD analysis: recovery contained below 0.7600

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7582

RBA Lowe said "interest rates will rise eventually."
Greenback under pressure despite upbeat US data.

The AUD/USD pair closed the day with gains a few pips below its daily high of 0.7589, helped by a confident RBA Governor Lowe and a broadly weaker dollar. The RBA released the Minutes of its latest meeting at the beginning of the day, offering a dovish tone that didn't surprise. Later on the day, however, the Central Bank governor Lowe spoke about the recent developments in the local and global economy at the Australia Business Economists Annual Dinner, and while reiterating that an accommodative monetary policy remains appropriate, he also added that interest rates will likely rise eventually. US upbeat data was not enough to take the pair down, rather driven higher by a modest recovery in base metals' prices and rising equities. The upward movement, however, seems just corrective, and with the pair below the 0.7600 mark, chances of a steeper recovery remain limited. Technical readings show a decelerating potential upward, as in the 4 hours chart, the pair is some 20 pips above an anyway bearish 20 SMA, while technical indicators turned flat after entering positive territory. The 0.7535 level is still the key support, with a break below it probably triggering a bearish acceleration toward 0.7450, the next big support.

Support levels: 0.7535 0.7490 0.7450

Resistance levels: 0.7590 0.7620 0.7660

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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