Driven by negative sentiment that hit the US dollar since economic data released overnight, which in the eyes of market participants stagflation potential, the Australian dollar back up a few hours ago.
The bullish impulse also came from domestic data showing the unemployment rate in Australia decreased from 5.6% to 5.5% in January.
Technical Analysis AUD / USD
The highest level while AUD / USD remains at the 50% Fibonacci retracement level at 0.7945. The strong resistance forces bulls to gather bigger bullish momentum to consolidate temporarily.
The European market reaction will someday be a determinant of whether additional momentum is expected to emerge and may bring AUD / USD to the resistance or should be corrected.
If broken, the path to the next resistance at 0.7990 will be more open. Conversely, if in Europe session resistance that persist then AUD / USD will slip to intraday support that this day is at 0.7922 and 0.7886.