- Slight rebound in Wall Street futures favors a rebound in AUD / USD.
- 21-hour average offers immediate resistance, bearish bias remains.
AUD / USD fell as low as 0.7530 in the Asian session, reaching the lowest level in three months. From that level it bounced up to the 0.7575 area, as the US dollar weakened.
Positive Eurozone data coupled with a pullback in Treasury yields favored the reversal in the very short-term trend of AUD / USD. In addition to the above, Wall Street futures point to a positive opening with gains between 0.05% and 0.90%.
The economic calendar shows several US economic data ahead on Thursday, among which the ISM report and PMI Markit manufacturers stand out. Friday is the turn of the official March employment report.
AUD / USD: Short-term technical outlook
From a short-term technical perspective, the pair is aiming to regain the 21-hour moving average at 0.7585 on the road to recovery. The Relative Strength Index (RSI) also rebounded from lows and is heading higher, suggesting that there may still be room for further recovery. The next stop for the AUD / USD is at the 50 hour average at 0.7598.
The dominant trend remains bearish. A dip below 0.7555 would remove strength from the ongoing correction, exposing the low for the day.
AUD / USD hourly chart
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