AUD/USD: consolidating below 0.7500 as markets take a breather

Currently, AUD/USD is trading at 0.7496, down -0.02% on the day, having posted a daily high at 0.7505 and low at 0.7493.

• Forex today: a mixed day for the DXY, up 0.31% despite corporate earnings disappointment in the DOW

AUD/USD has been consolidating the downside and lows of the 0.7560 zone's sell-off. The markets were consolidating the recent volatility, for the most part, mixed in areas such as the benchmarks on Wall Street during a mixed set of earnings results. The dollar was better bid into NY although struggled in the risk-off Wall Street environment and enabled the Aussie to stablise despite the poor performance in key commodities such as base metals. 

• Wall Street closes mixed as investors assess earnings

Analysts at Westpac explained that affirmation of a neutral RBA and its concerns over housing and household balance sheets should see AUD remain under pressure in week light on AU data. "Domestic attention in Australia will focus upon the 9th May Budget where Turnbull’s weak Government endeavours to bolster popular support whilst avoiding a rating's downgrade."

AUD/USD levels

AUD/USD near term outlook is negative, as noted by analysts at Commerzbank and now that the 0.7492 March low has been broken, this was the breakdown point to the 2016-2017 uptrend at 0.7274 and the bottom of the 16 month range. The analysts longer term outlook is also negative: "The repeated failure in the 0.7750/0.7836 region turns the market from the topside of a converging range and leaves it heading to the base of the range offered by the 2016-2017 uptrend at 0.7267."

• AUD/USD analysis: Looking south, to last week lows

Meanwhile, from a more bullish perspective, Matías Salord, analyst, and editor at FXStreet explained that if the Aussie rises above 0.7530 it would ease the pressure and could test the 0.7560 level. Only a daily close significantly above 0.7585 would damage seriously the current bearish perspective of the daily chart.