AUD/USD reverses daily losses, back above 0.7550
After slipping to a new three-week low at 0.7544, the AUD/USD is making an unconvincing correction during the first trading hours of the NA session. The recent upsurge seems to be nothing more than a technical correction as the RSI on the hourly graph is moving away from the oversold region after falling to 23. As of writing, the pair is down 0.67% at 0.7555.
AUD dragged by RBA
Despite a positive trade surplus reading from Australia, the AUD stayed under pressure during the day amid the Reserve Bank of Australia (RBA)'s decision to keep the interest rates unchanged and the Governor Phillip Lowe's statements. Lowe during his speech voiced his concerns over the slowdown in the Chinese economy and a possible shift to global protectionism. Although he noted that the new measures on home lending could help the debt problem, he still sees the issue of slow wage growth as a drag on the economic strength.
- RBA’s Lowe: New measures on home lending should help pull back the whole system to a more sustainable position
The macro data from the United States were largely ignored as the greenback, measured by the US Dollar Index, continues to move sideways in a narrow channel around 100.50 area. The next relevant data for the pair will be the AiG Performance Services Index from Australia at the beginning of the Asian session.
- US: Goods and services deficit was $43.6 billion in Feb., down $4.6 billion from $48.2 billion in Jan.
- United States ISM New York index increased to 56.5 in March from previous 51.3
Technical levels to consider
Above 0.7600 (psychological level), the AUD/USD could face the next resistance at 0.7640 (20-DMA/50-DMA) followed by 0.7680 (Mar. 30 high). On the downside, supports are aligned at 0.7535 (100-DMA), 0.7490 (Mar. 9 low) and 0.7455 (Jan. 16 low).
