Round Trip

AUD pairs staged an initial recovery before collapsing into the close, AUD/USD last at 0.7591, having retreated from around 0.7630. The move lower was due to further gains in the greenback, upside in oil prices failed to stem AUD downside.

• RBA's Debelle spoke after market yesterday maintaining a dovish outlook, he told a parliamentary panel that he was hopeful that the positive surprises in the labour market would continue, but that he expected to recovery to be bumpy and uneven.
• Elsewhere, data showed Australia's coal exports dropped to the lowest since October last week, dropping to 6.2m tons – 16.6% below average. The recent flooding in Australia was blamed for the decline, the effects are forecast to last for some time as floods cut of rail deliveries to major hubs.
• From a technical perspective AUD/USD traded lower Tuesday and Wednesday to maintain a softer tone. The pair has this week breached support at 0.7621, Mar 9 low and a bear trigger. The break lower confirms a resumption of the bearish cycle that started at 0.8007, Feb 25 high and the move lower paves the way for weakness towards 0.7564 next, the Feb 2 low and below. On the upside, key resistance has been established at 0.7849, Mar 18 high.