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AUD/USD trims losses, still remains under 0.7200

  • Aussie recovers ground against US dollar, still down for the day. 
  • Weaker US dollar and risk appetite support AUD/USD move higher. 

The AUD/USD pair is consolidating below 0.7200. During the American session moved off lows on the back of a slide of the greenback but remain in negative territory for the day. 

Earlier today, the demand for the greenback pushed AUD/USD to 0.7160, the lowest in almost a week. After finding support, recovered as the DXY moved off daily highs. Recently the pair reached 0.7188 and pulled back to 0.7180, where it stands. The improvement in risk sentiment also supported the Aussie. Equity prices in Wall Street are up with the Dow Jones rising 0.60% and the Nasdaq 0.45%. 

Price action across financial markets remain limited. In the UK, the no-confidence vote against PM May will take place around 19:00 GMT. At that time in the US, the Beige Book will be released. 

Levels to watch 

Despite the recovery, momentum still favors the downside in AUD/USD near-term. A firm recovery above 0.7200 will likely remove the bearish pressure and open the doors to a test of the 0.7210 resistance, above attention would turn to the weekly high at 0.7225. On the flip side, support levels might lie at 0.7160 (daily low), followed by 0.7145 and 0.7115 (last week low). 

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