AUD/USD rebounds from session lows, stays in the negative territory below 0.7750
- AUD/USD lost its traction after starting the new week on a firm footing.
- RBA's Lowe says they will continue to support economy until they reach their goals.
- US Dollar Index consolidates Friday's gains, fluctuates below 92.00.
After failing to hold above 0.7800 and closing the day in the negative territory on Friday, the AUD/USD pair edged higher during the early trading hours of the Asian session but lost its traction. Currently, the pair, which touched a session low of 0.7721, is down 0.23% on the day at 0.7745.
AUD struggles to preserve its strength despite strong China data
Earlier in the day, the data from China showed that Retail Sales in February increased by 33.8% on a yearly basis and Industrial Production expanded by 35.1%. Both of these figures came in stronger than analysts' estimates and helped the China-proxy AUD find demand.
Meanwhile, Reserve Bank of Australia (RBA) Governor Phillip Lowe reiterated on Monday that they will continue to support the economic recovery from the pandemic until they achieve their employment and inflation goals.
On the other hand, following Friday's rebound on the back of surging US Treasury bond yields, the US Dollar Index (DXY) seems to have gone into a consolidation phase. At the moment, the DXY is posting small daily gains at 91.76, forcing AUD/USD to remain in the negative territory.
Later in the session, the NY Empire State Manufacturing Index will be the only data featured in the US economic docket. On Tuesday, the RBA will release the minutes of its March 2 monetary policy meeting.
Technical levels to watch for