AUD/USD Recovers Ground but Remains Capped by 0.7200

AUD/USD Recovers Ground but Remains Capped by 0.7200

24 May 2016, 19:12
Roberto Jacobs
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AUD/USD Recovers Ground but Remains Capped by 0.7200

The Australian dollar took a breather and managed to recoup some of its intraday losses against the greenback helped by better sentiment in financial markets seen during the American session.

AUD/USD rebounded from a 2 ½-month low struck at 0.7144, but the bounce was capped by the 0.7195/0.7200 region, leaving the pair in negative ground for the day. At time of writing, AUD/USD is trading at 0.7180, still 0.58% below its opening price.

The Australian dollar came under pressure on Tuesday after RBA Governor Stevens speech. He noted that the Australian dollar was moving in the right direction (down) and said that inflation was low and below target, prompting speculation of an additional rate cut in the near-term.

AUD/USD levels to consider

In terms of technical levels, next supports are seen at 0.7144 (May 24 low), 0.7108 (Mar 1 low) and 0.7068 (Feb 19 low). On the other hand, resistances could be faced at 0.7227 (May 24 high), 0.7255 (200-day SMA) and 0.7330 (May 18 high).


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