AUD/USD bid towards 0.72 key resistance ahead of Tokyo

FXStreet (Guatemala) - AUD/USD is currently making some ground in a minor recovery from the overnight lows of 0.7162 as Stevens testifies.

AUD is relatively stable having found support in the mid point of the 0.71 handle after the downside reversal that came of risk-off markets as investors quickly switched away from riskier assets given the bearish tone that came from the FOMC members who are concerned for Global growth.

As investors scramble looking for anything bullish from key Global players in the industry, the RBA has been a pretty safe bet in that respect of late, while prepared to give the economy time to adjust to previous measures taken to spur growth in the nation. On a number of recent speeches, officials have been upbeat about the outlook for the economy and Stevens has testified before Parliament today and has explained that the economy is progressing but not as fast as they would like.

Key takeaways so far, he explained that the rate of unemployment seems to have stopped rising and that unemployment is lower than 6 months ago. He continues to testify at time of writing and just said that they are content now where they are on interest rates.

AUD/USD downside open below 0.7050

Technically, the 0.72 handle may prove to be a tough area of resistance leading into the end of the week and continued failures here could provoke a retest of the 0.7050 support. This is a key support area that may give way to the downside and target the 0.6905 recent low ahead of 0.6774 being the 2004 low longer term.