- AUD / USD bounced from 0.7582, the low in a month and a half, above 0.7600.
- Profit taking around the dollar and stock rally on Wall Street favor the rebound.
The AUD / USD recovered more than 40 pips from the 0.7582 zone, the lowest in almost two months and climbed to 0.7627, just below the maximum of the Asian session. It is trading at 0.7615, far from the lows for now, but at the same time with the recovery losing steam.
A modest rebound in US equity futures triggered some profit-taking around the US dollar and extended some support to the Australian dollar.
The AUD / USD, for now, appears to have stalled its recent sharp pullback from the 0.7850 zone (March 18 high), which it reached last week after the FOMC meeting. Investors remain optimistic about the prospects for a relatively faster economic recovery in the United States, with the pace of vaccination and the passage of the massive stimulus package. Additionally, renewed nervousness over COVID-19, potential tax increases in the US, and diplomatic tensions between China and the West could further constrain AUD / USD.
Looking ahead to the next few hours, traders will remain attentive to what happens on Wall Street and with the Treasury bond market. Also in the US Yellen and Powell will expose again, this time before a Senate committee. In addition, the durable goods orders report and March PMI will be published.
Technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
