AUD/USD rises on Wednesday ahead of key Australian data

• AUD among top performers remains in range against US Dollar.
• Key data ahead: Australian Consumer Inflation Expectations and employment report.

The AUD/USD pair rebounded today and erased most of Tuesday’s losses. It rose further during the US session and peaked at 0.7522. Near the end of the session was hovering around 0.7510/15, up 45 pips for the day.

The improvement in risk sentiment particularly regarding Emerging Markets, after yesterday’s sell-off, helped the Aussie and also other commodity currencies. Despite the recovery, AUD/USD continues to trade within a consolidation range still close to monthly lows but holding above the 0.7440 area.

On Thursday, key data from Australia will be released and is likely to be the main driver during the Asian session. The first report will be Inflation expectations for May, followed by the April employment report (net change expected: +20K).

AUD/USD Technical outlook

“The 4 hours chart shows that the pair is currently at its daily highs, struggling with bearish 20 and 100 SMA, and with technical indicators recovering ground with uneven strength, the Momentum still shy, but the RSI firmly up at around 55”, says Valeria Bednarik, Chief Analyst at FXStreet. According to her, the main resistance from here is 0.7565 the 38.2% retracement of its latest decline.

AUD/NZD up, still below weekly highs

The Aussie continues to move with a bullish bias against the Kiwi and is about to post the highest close since January. AUD/NZD climbed more than 200 pips from a week ago. The rally remains capped by the 1.0900 area and a break higher could clear the way to more gains.