AUD/USD - Stellar rally stalls above monthly 200-MA

The already weak US dollar was pounded into submission on Tuesday after Treasury Secretary Steve Mnuchin said that a weaker USD is good for the US.

The AUD/USD clocked a fresh four-month high of 0.8083 in the North American session before settling at the monthly 200-MA of 0.8060. As of writing, the pair is trading at 0.8055 levels.

Also, the sharp rise in the AUD/NZD cross following the release of a dismal New Zealand fourth quarter CPI failed to put a bid under the AUD/USD pair. The data was released about three hours ago and saw AUD/NZD cross jump more than 130 pips to 1.0995. Still, the rally in the AUD/USD stalled above 0.8060 (monthly 200-MA) levels.

That said, the spot could still catch a fresh bid, courtesy of the strong performance of key commodities. For instance, gold price rallied $11 to $1352 levels yesterday. Copper gained 3.3 percent, and nickel surged 5.7 percent.

AUD/USD Technical Levels

FXStreet Chief Analyst Valeria Bednarik writes, "Technically, the 4 hours chart shows that the pair is well above a bullish 20 SMA, while technical indicators lost their upward momentum, now retreating modestly from overbought readings. However, and considering the shallow price retracement, the risk remains skewed toward the upside, with a break above the mentioned 2017 high, opening doors for a test of May 2015 high at 0.8162."

Support levels: 0.8035 0.8000 0.7965                                 

Resistance levels: 0.8090 0.8125 0.8160