AUD/USD recovery limited, consolidates around 0.7600 ahead of GDP data

• Australian dollar trimmed losses during US session, still down for the day against USD.
• Key data ahead: Australian Q1 GDP growth due at 01:30 GMT.

The recovery from the lows of the AUD/USD was limited but it held on top of 0.7600 ahead of the release of GDP data from Australia.

The US dollar lost strength during the American session and pushed AUD/USD to the upside. The pair bottomed earlier at 0.7593 and rebounded, rising to 0.7625. Near the end of the session was hovering around 0.7605/10, down 40 pips from yesterday’s close. The AUD/USD is still sharply positive for the week. It dropped on Tuesday but kept most of Monday’s gains.

Since the RBA decision early on Tuesday, the Aussie moved with a bearish bias. The central bank kept interest rate unchanged as expected at 1.5% and mentioned some positive comments about the current level of AUD/USD. The next key event will be the Australian GDP report. A 0.9% reading is expected for the quarter and 2.8% y/y.

AUD/USD Technical outlook

“Technically, the 4 hours chart shows that the risk remains skewed to the upside, as the pair bounced from a bullish 20 SMA, while technical indicators have recouped their upward slopes within positive territory”, says Valeria Bednarik, Chief Analyst at FXStreet.
She adds that the pair managed again to settle above the 50% retracement of its latest daily slump at around 0.7615, the immediate support.