FXStreet (Mumbai) – The Australian dollar erased overnight gains and fell back in the negative territory versus the US dollar in the early Asian hours, pushing AUD/USD closer towards 0.77 handle. The pair turned lower at Tokyo open, after the Australian dollar tracked losses from its OZ neighbour following poor NZ GDP data.
AUD/USD poised to test 0.77 barrier
Currently, the AUD/USD pair trades -0.27% lower at 0.7729, retreating from 0.7711 lowest. The Aussie came under pressure after weak New Zealand GDP data dragged the entire Antipodean complex lower.
The NZD/USD pair is seen losing more than 1% and trades below 0.69 handle after the nation’s GDP growth came in just 0.2% in the March quarter, according to Statistics New Zealand, coming in much weaker than the market and the RBNZ’s forecast expansion of 0.6%.
However, the losses in the Aussie were cushioned by broad US dollar weakness following dovish FOMC statement released on Wednesday, which revealed a wait and see approach by the Fed before the first Fed rate hike in a decade.
Looking ahead, markets shift their attention towards a batch of crucial economic data from the US which may have major impact on the AUD/USD pair.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.7767 (June 12 High) levels, above which gains could be extended to 0.7773 (June 17 High) levels. On the flip side, support is seen at 0.7711 (Today’s Low) levels from here it to 0.7642 (June 17 Low) levels.
(Market News Provided by FXstreet)