Aussie dollar regains upside against major counterparts

After being pressurised at the beginning of Wednesday trading, the Australian dollar recovered to trade in positive territory versus its major counterparts.

The rebound came on the back of weak Australian CPI ratings, which pulled the AUD/JPY up from a four-week trough in the 79.50 region to session highs around 79.95, up by roughly 20 pips from its starting price.

The AUD/CAD dropped to 1.0398, a six-day low, in early trade, but recovered to gain some ground and was last seen trading above the 1.0450 mark versus 1.0442. The climbing 21-day EMA attracted bids, so did the retracement level of 61.8 per cent of the 1.0319/1.0517 upswing.

Against its kiwi counterpart, the aussie was trading at seven-month highs around 1.3070 after falling to 1.2997 in earlier trading on Wednesday. The 50 per cent retracement of the decline of 1.3787/1.2318 was penetrated at 1.3052. Resistance for the AUD/NZD is at around 1.2125, the high from 25 October.

The early dip in AUD/USD stalled at 1.0173, the 55-day EMA, and later recovered to climb to a daily high of 1.0234. in addition, the downward trend of channel support drew bids, indicating that bulls could be enjoying a recovery after falling from three-month highs during the last few days.