AUD/USD reverses, drops toward 0.7600
- Aussie trims gains versus US Dollar on a mixed Wall Street.
- The dollar recovers some momentum even as US yields remain near daily lows.
The AUD/USD peaked at 0.7636 on the first hours of the American session, but it quickly pulled back toward 0.7600. The move took place as some stocks in Wall Street pulled back. As of writing, the pair is hovering around 0.7605, up ten pips for the day.
The greenback trimmed losses across the board even as US yields remain near daily lows. Economic data from the US showed the private sector added more than 500K jobs in March according to ADP; the Chicago PMI jumped to 66.3, surpassing expectations and Existing Home Sales tumbled 10.6% in February.
Market participants mostly ignored the numbers. On Friday, the Non-farm payroll report is due. Later on Wednesday, US President Biden will present its infrastructure plan. In Australia on Thursday, economic data to be release includes the AiG Performance, Home Loans, Trade Balance, and Retail Sales.
Short-term technical outlook
The AUD/USD pair dropped back below the 20-SMA in four hours chart that stands at 0.7620. A consolidation above 0.7620 should remove the negative short-term bias. The downside seems controlled while above 0.7585. A break lower would expose the last week low at 0.7562 and the 0.7560 support area that is critical.