AUD/USD turns negative near 0.7650, Aus GDP shrugged-off?

The AUD/USD pair reversed sharply from stronger Aus Q4 GDP data-led rally and now flirts with the mid-point of 0.76 handle amid resurgent broad based USD demand.

The greenback rebound against its main competitors, backed rallying treasury yields, in a delayed reaction to Trump’s speech before the Congress, especially after the US President announced a $ 1 trillion infrastructure program that will be financed by both public and private capital, while sticking to his promises on tax cuts.

However, the downside appears capped as upbeat Australian growth numbers and solid China PMI data continue to buoy the sentiment around the Aussie somewhat. Australia’s Q4 GDP data, which arrived at 1.1% q/q versus 0.7% expectations and -0.5% previous, with the economy avoiding a recession.

Next on tap for the major remains the US data releases and FOMC member Kaplan’s speech due later in the American session.

AUD/USD Levels to watch   

At 0.7670, the pair finds the immediate resistance at 0.7710 (Feb 27 high) above which gains could be extended to the next hurdle located 0.7743 (multi-week high) and 0.7780 (psychological levels). On the flip side, the immediate support located at 0.7635 (daily S1). Selling pressure is likely to intensify below the last, dragging the Aussie to 0.7600 (round figure) and below that 0.7542 (200-DMA).