AUD/USD rebounds back above 0.7150 and erases losses

• Aussie strengthens during the US session and rises across the board.
• US data: Industrial production contracts unexpectedly. 
• Important Chinese economic data due on Wednesday. 

The AUD/USD pair recovered ground during the American session and erased daily losses, rising back to the 0.7170/80 area. 

AUD recovers, back to pre-RBA minutes level 

The Aussie dropped during the Asian session following the release of the RBA meeting minutes. The central bank mentioned that the likelihood of a near-term rate hike was low. After bottoming at 0.7138 it moved between 0.7140 and 0.7150 for hours until it broke to the upside. It erased all losses and at the moment trades at 0.7170, at the same level it closed yesterday.

Data from the US came in below expectations. Industrial Production fell 0.1% in March against the 0.2% expansion expected. On Wednesday,  critical Chinese economic data is due that could have a large impact on the Aussie. The reports include retail sales, industrial production, and GDP. 

Technical outlook

The pair continues to move in an ascendant channel holding the bullish bias. Recently broke above 0.7150 and climbed to 0.7178 approaching weekly highs. It is back in the 0.7180 area; to the upside, the next strong resistance is 0.7200. 

The key level to the downside, is 0.7130/35, an uptrend line that if broken could lead to more losses, exposing 0.7120 and 0.7105