FXStreet (Mumbai) – The Australian dollar staged a solid recovery from RBA Stevens-led lows versus the US dollar in the early European trades, driving AUD/USD firmly above 0.77 handle. The Aussie rebounded sharply largely on the back of broad based USD sell-off triggered by a 200+ pips slump seen in USD/JPY.
AUD/USD extends recovery from 0.7680
Currently, the AUD/USD pair rallies 0.55% to 0.7732, hovering around fresh session highs reached at 0.7748. The Aussie wiped out losses from mid-Asia and bounced-back strongly after the US dollar was broadly undermined by USD/JPY sell-off following BOJ Kuroda’s optimistic comments on the yen.
Earlier in Asia, the Aussie came under pressure and dropped to 0.7636 lows after RBA Stevens said in his speech that the Australian dollar is expected to depreciate further while the main market mover came in after he stated that the central bank is open to more easing if it is necessary for economic growth.
Looking ahead, employment numbers will be published on Thursday, where the market anticipates the jobless rate to stay at 6.2%.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7722 (June 9 High) levels, above which gains could be extended to 0.7790 (June 4 High) levels. On the flip side, support is seen at 0.7615 (May 28 Low) levels from here it to 0.7596 (June 5 Low) levels.
(Market News Provided by FXstreet)