AUD/USD erases gains after US data, slides toward 0.6600

• US growth data comes in below expectations.
• US Dolla rises across the board boosted by US yields.
• AUD/USD up marginally, off highs after losing ground for four days in a row.

The AUD/USD is rising marginally on Thursday after it trimmed gains on the back of US economic data. The pair peaked on Asian hours at 0.6635 and recently fell to 0.6594. It is hovering around 0.6610, with a bearish bias amid a stronger US Dollar.

Dollar and Wall Street up despite US growth numbers

The US Dollar strengthened following the US Q1 GDP report. The economy grew at an annualized rate of 1.1%, below expectations. Personal Consumption Expenditures Prices rose by more than anticipated by 4.2%. Initial Jobless Claims for the week ended April 21 resulted in 230K, better than the expected 248K. Pending Home Sales declined by 5.2% on a monthly basis in March.

The numbers pointed to slower growth and somewhat persistent inflation pressures. US yields are sharply higher, boosting the US Dollar across the board. The 10-year yield is at 3.52% and the 2-year at 4.06%.

More US data is due on Friday with the Core Personal Consumption Expenditures Price Index and Income and Spending figures. Next week is the FOMC meeting. Market participants looks for a final 25 basis points rate hike.

The Reserve Bank of Australia will also have its monetary policy meeting next week. The RBA is expected to keep rates unchanged for the second meeting in a row.

The AUD/USD is moving sideways on Thursday, after posting the lowest daily close in a month around 0.6600. The pair has fallen during the last four days, and is attempting to stabilize.

A consolidation below 0.6600 would expose March lows at 0.6560/65; with a break lower likely to trigger a downside acceleration.

Technical levels