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AUD/USD bounces-off 5-week lows, recovers to 0.7750

FXStreet (Mumbai) - The Australian dollar rebounded from fresh five week lows versus its US counterpart in the mid-Asian trades, lifting AUD/USD to the mid points of 0.77 handle. The Aussie erased losses and regained ground somewhat after the US dollar took a breather in its upsurge following a raft of robust US fundamentals released on Tuesday.

AUD/USD rises from 0.7726

Currently, the AUD/USD pair trades 0.12% higher at 0.7747, hovering close to fresh session highs of 0.7754, recovering from 0.7726 fresh five week lows. AUD/USD recovered slightly and turned positive mainly driven by a profit-booking rally after traders preferred to lock-in gains on their USD longs after traders saw convincing signs of US economy gathering pace yesterday.

More so, the USD bulls ramped up the pressure and drove the greenback to highest levels in five weeks against the Australian dollar this morning after the US dollar ran through fresh buyers from Asia picking up USD bids. Markets also shrugged off weak Aus construction activity which fell for the sixth-consecutive period last quarter in Australia.

Meanwhile, markets now shift their attention towards key Australian private capex numbers to be published tomorrow in absence of any macro data from US due today.

AUD/USD Technical Levels

The pair has an immediate resistance at 0.7800 levels, above which gains could be extended to 0.7845 (March 18 High) levels. On the flip side, support is seen at 0.7726 (Today’s Low) levels from here it to 0.7700 levels.

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