AUD/USD rebounds on Friday and trims weekly losses

The Aussie rebounded on Friday after falling during the previous three trading days against the US dollar. AUD/USD is still head toward a weekly loss but remains near 2-month highs. 

Yesterday, the pair dropped to 0.7534, the lowest level in a week. Today during the Asian session it started to recover and peaked on European hours at 0.7582, the highest since Tuesday. 

Currently, it trades at 0.7570/75, 40 pips below the level it had a week ago. Among the most relevant data released during the week, were the minutes from the latest meeting of the Reserve Bank of Australia. It showed no surprises and the central bank holding a neutral stance. Next week data from Australia includes new home sales (Thursday) and private sector credit (Friday). 
 
Technical outlook 

The pair spent most of the time during the week correcting lower after the rally from early June at 0.7375 to 0.7633 (Jun 14 high, the highest level in 75 days). The decline from 2-month highs found support yesterday at 0.7530.  Today is rising sharply erasing the losses of the previous two days. 

Friday’s rally could be the end of the bearish correction. For the aussie to resume the upside, it needs to initially rise back above 0.7600 and then be able to hold on top of 0.7620/30, that has become, a key level. 

Overall the tone still favors the upside, but it needs to break the mentioned level above, in order to avoid a more significant correction.