AUD/USD remains in negative territory Tuesday holding above four month lows, after the pair plummeted to around $1.0110 on Monday, its weakest level seen on the year so far. The pair managed to rally back to $1.0221 late yesterday amid an improved tone in equity markets, although traders still see the upside constrained by the explicitly dovish turn in the monetary policy debate in Australia. The Aussie slipped back to session lows of $1.0168 this morning on disappointment over March trade deficit which showed the worst outcome since March 2010. The pair has since stabilised to now trade at $1.0184, although sentiment remains fragile despite the moderate bounce with European stability the main focus. Support is seen around $1.0123 which is a 50% retracement of the rally seen between Oct and Feb. Selling pressure is seen around the $1.0225 to $1.0250 area.
EasyForexNews Research Team