AUD/USD reverses sharply and erases weekly gains

AUD/SUD failed to hold to gains and turned negative during the US session. The pair was affected by risk aversion and reversed sharply. Earlier today hit a 2-week high at 0.7896. 

It climbed to levels near 0.7900 after the release of US inflation data. It was unable to break above 0.7900 and lost strength. It started to correct to the downside and accelerated under 0.7860. Recently bottomed at 0.7844, the lowest since the beginning of the week. 

Near the end of the day, it was hovering around 0.7850/55, headed toward a daily loss of around 20 pips after rising almost 100 pips during the previous two trading days. 

The pair failed to benefit from a weak US dollar. The greenback was affected by Trump’s firing of Rex Tillerson. US President nominated Mike Pompeo to be Secretary of the State. 

On Wednesday, relevant economic data will be released. In Australia, the March consumer sentiment is due and in China retail sales and industrial production data. In the US, PPI and retail sales numbers. 

AUD/USD Levels to watch 

To the upside, immediate resistance is seen at 0.7860 followed by the psychological 0.7900 and then 0.7915. On the flip side, support could be located at 0.7835/40 (Mar 8 high), 0.7815 (uptrend line) and 0.7795.