AUD / USD recovers modestly from five-week lows, remains below 0.7600

• The Australian dollar is among the worst performers on Tuesday after the RBA meeting.
• The US Dollar rises against the G10, DXY currencies at monthly highs above 91.00.

The AUD/USD it extended the decline and bottomed at 0.7562 during the US session, reaching the lowest level since December 28. It then rallied, meeting resistance at the 0.7590 area. It remains under pressure as the US dollar remains the best performer.

Dollar outperforms G10, lower against emerging markets

Stock prices on Wall Street are rising sharply. The Dow Jones is up 2.01% and the Nasdaq 1.56%. US yields rose even higher during the day, but are far from the highs. 10-year yields peaked at 1.11%, the highest level in two weeks before falling back modestly.

The US dollar has risen

considerably compared to its G10 rivals. The DXY is at 91.20, up 0.25% on the verge of registering the strongest close since December 1. The dollar is falling against emerging market currencies that are on demand amid appetite for risk.

The Aussie is holding on to daily losses across the board, hit by the Reserve Bank of Australia meeting. Falling gold, silver and AUD / NZD weaken the Australian dollar.

“Although we were skeptical, some analysts were looking for some kind of downsizing message. Instead, the RBA delivered the opposite. We suspect that Australian lawmakers are watching the apparent slowdown in China’s economy as closely as we are and are not risking any kind of premature withdrawal from accommodation, ”explained analysts at Brown Brother Harriman. The RBA kept rates unchanged and extended its QE beyond April, increasing the program by AUD100 billion.

RBA Governor Lowe will speak Wednesday and is due to testify before Parliament on Friday. Also on Friday, the RBA will publish its Quarterly Statement on Monetary Policy.

Technical levels