AUD/USD erases losses, support by the 50-DMA

The AUD/USD pair corrected its daily losses after being supported by the 50-DMA around 0.7630. As of writing the pair is at 0.7660, about ten pips below where it started the day. 

The modest recovery of the US Dollar index seems to have lost momentum around 99.70 region as the index dropped back to 99.50 during the early NA session, allowing the AUD/USD to recover. The pair, however, could struggle to extend this move as the major US equity indices are likely to stay under pressure, hurting the risk appetite.

Furthermore, Comex Copper prices remain in retreat amid lower industrial demand, weighing further on the AUD. Macro data from the U.S. was ignored by the participants as the Housing Price Index (MoM) came in at 0% in January, missing the expectations of 0.4%.The next data set, existing home sales, is not expected to have any impact on the markets either, leaving the AUD/USD at the mercy of the greenback.

Copper dips below 100-DMA, hits one-week low

Technical outlook

The first technical support for the pair is located at 0.7630 (50-DMA) and a breach of this level could target 0.7555 (Mar. 15 low) and 0.7510 (100-DMA). On the upside, resistances are aligned at 0.7700 (psychological level), 0.7750 (Mar. 21 high) and 0.7780 (Nov. 8 high).