AUD/USD retakes 0.7100 and above, session tops

• The AUD extends the rebound above the 0.71 mark.
• Spot met support in the 0.7050 area.
• AU Services PMI came in below expectations in March.

The Aussie Dollar is extending the rebound from weekly lows and is now lifting AUD/USD to levels above the critical 0.7100 the figure.

AUD/USD met support in the mid-0.7000s

The Aussie Dollar is reversing yesterday’s sharp pullback to the 0.7050 region on the back of the somewhat dovish message from the RBA at its meeting early on Tuesday.

Today, the better sentiment around the riskier assets following positive results from the Chinese docket and auspicious news from the US-China trade negotiations lifted spot back above the critical 0.71 the figure and beyond.

In the Aussie calendar, the Services Index gauged by AIG came bettered a tad to 44.8 during March, Retail Sales expanded above estimates at a monthly 0.8% in February and the trade surplus widened to $4.801 billion, also surpassing forecasts and in turn lending extra wings to AUD.

What to look for around AUD

The broad risk-appetite trends continue to drive the sentiment in the high-beta currencies and the commodity-bloc, where developments in the US-China trade dispute remain the almost exclusive catalyst of the price action. Sustainable gains in the pair still seems limited, particularly on the back of the neutral/dovish stance from the RBA, confirmed after Tuesday’s meeting.

AUD/USD levels to watch

At the moment the pair is gaining 0.77% at 0.7125 and a breakout of 0.7150 (100-day SMA) would aim for 0.7168 (high Mar.21) and finally 0.7205 (200-day SMA). On the downside, the next support emerges at 0.7052 (low Apr.2) followed by 0.7003 (low Mar.8) and then 0.6907 (monthly low Sep.4 2015).