AUD/USD has pared over 3% losses on the day to move to 0.5780 now
The aussie is posting a decent recovery on the day as it sees losses against the dollar pared completely as AUD/USD now moves towards 0.5780 levels and closes in on 0.5800.
The retracement largely stems from RBA Lowe's message on FX intervention but we are also seeing European stock futures trim losses ahead of early morning trade.
As solid as the rebound is today, in the context of the week the aussie is still down by nearly 7% against the dollar over the last four days.
The near-term picture still has not changed with the bias still favouring sellers i.e. price action still sitting below key hourly moving averages. I would argue this has a lot more to do with short covering than a potential turnaround - for now at least.
But this is a good start for buyers to try and build back some momentum to the upside. Keeping above 0.5800 will be key in that regard so let's see if they can maintain that momentum in the sessions ahead.
For trading today, it feels like pretty much anything can happen after the "orderly disorder" trading day yesterday. I wouldn't rule out anything at this stage but if you're short on the aussie, there shouldn't be much qualms to scale out some profit at these levels.
