AUD/USD bouncing off 0.9120

FXstreet.com (Edinburgh) - The Aussie dollar is recovering early losses after dipping to the vicinity of 0.9120 overnight, picking up pace and lifting the AUD/USD to the current region around 0.9140.

AUD/USD hovering over 3-year lows

Bearishness is still surrounding the AUD promoted by the easing cycle of the RBA, dragging the cross to the area of 0.9050 earlier this week, levels last seen in September 2010. The pair is also posting a negative weekly close so far, falling in ten of the last twelve weeks and yet unable to gather traction and initiate a recovery. “Australian FX and rates markets were burned this week by hypersensitivity to RBA commentary. But the key takeaway is probably how fragile AUD sentiment remains… AUD/USD seems overdue a decent bounce but news flow and USD sentiment aren’t helping. Near term risks a little lower”, commented the research team at Westpac.

AUD/USD key levels

As of writing the pair is losing 0.02% at 0.9145 with the next support at 0.9038 (low Jul.3) ahead of 0.9000 (psychological level) and finally 0.8871 (high July 2007). On the flip side a break above 0.9328 (mid-June low) would bring 0.9344 (downtrend) and then 0.9389 (channel line).