AUD/USD recovers from 2-day lows

FXStreet (Córdoba) - The AUD/USD pair dropped during the European session to 0.7755, reaching the lowest price since Tuesday and rebounded rising back toward 0.7800. The aussie recovered ground across the board after falling on Asian hours following a warning from the rating agency S&P arguing that the Australian budget would be vulnerable to a global economic shock that could put the AAA rating at risk.

Earlier AUD/USD reached 0.7842, highest level in almost 2-week but then after the S&P release and also amid a rally of the US dollar across the baord, reversed sharply.

AUD/USD levels to watch

The upside continues to face a strong resistance around 0.7850. The pair has been unable to consolidate above the mentioned level since the beginning of February, if it holds above it could trigger a bullish rally. To the downside, the key support levels might lie at 0.7715/20 and below here at multi-year lows located at 0.7620/25.