AUD/USD reverses early losses and revisits weekly highs

AUD/USD climbed to retest weekly highs on Wednesday, recovering more than half a cent from Australian GDP-inspired losses during the American session.

AUD/USD climbed to a daily peak of 0.7483, matching Monday’s high, but the pair found resistance once again at that level and retreated slightly. AUD/USD was last trading around 0.7470, still up 0.19% on the day.

“Early losses today on a large downside miss to Q3 GDP, reflecting the weakest rate of growth since the financial crisis, were reversed quite easily. Weakness was perhaps presaged by the cautious outlook on growth provided by the RBA’s statement yesterday,” said Scotiabank analyst team. “Still, we think the AUD will struggle to extend above 0.75 and remains vulnerable to a test of support at 0.7375. Trade data are released this evening.”

AUD/USD technical levels

As for technical levels, next resistances are seen at 0.7497 (Dec 5 high), 0.7530 (200-day SMA) and 0.7561 (50-day SMA). On the other hand, supports could be faced at 0.7411 (Dec 5 low), 0.7369 (Dec 1 low) and 0.7310 (Nov 21 low).

To learn more about this topic, check our video analysis:

AUDUSD from Tip TV Productions on Vimeo.