AUD/USD: better bid on oversold readings - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that AUD/USD pair bounced modestly overnight from a fresh 2-month low of 0.7299 achieved during the Asian session, with the Aussie paring losses after reaching the 50% retracement of this year's rally.

Key Quotes:

"Stabilizing Chinese inflation and an intraday recovery in commodities, helped the pair to recover some ground, albeit the shallow advance is not enough to suggest the downward potential is over.

Still Aussie weakness seems overextended ever since the RBA announced a surprise rate cut last week, and a sharp drop here is unlikely, before some consolidation/short term upward correction."