AUD/USD consolidates modest gains, moves away from 11-month lows

• AUD/USD ends in positive ground after a 3-day slide..
• Recovery supported by US correction and higher crude oil prices

The AUD/USD pair is moving in a range consolidating modest daily gains. Earlier today bottomed at 0.7411, the lowest since June and rebounded sharply, rising to 0.7471. Since the begging of the US session, it is moving in a range between 0.7465 and 0.7450.

The recovery from the lows was boosted by risk appetite and a rally in crude oil prices. US data had no impact on prices. The PPI rose 0.1% below the 0.2% expected in April. On Thursday, CPI data will be released. Also in China inflation numbers are due. In a few minutes, the RBNZ will announce its decision that could affect the Aussie if AUD/NZD moves significantly.

Technical outlook

The 60-pip rebound from the lows could signal some consolidation ahead for the AUD/USD, although the bearish trend remains intact.

“Technically, the pair has recovered just modestly, and as it happens with other major pairs, seems a mere correction in the middle of the dollar's strong bullish trend”, said Valeria Bednarik, Chief Analyst at FXStreet.

According to her, technical readings in the 4 hours chart indicate that the risk remains toward the downside, as the pair keeps developing below a bearish 20 SMA, “while technical indicators lost upward strength within negative territory after correcting oversold conditions”.