AUD/USD drops despite relief rally in Dalian iron ore futures

• Risk-on in stocks and the relief rally in iron ore futures is not helping the Aussie dollar. 
• AUD/USD fails to hold above the descending 10-day moving average. 

Currently, AUD/USD is trading at 0.7735, having clocked a session high of 0.7758 earlier today. 

The decline from the session high contradicts the 1.1 percent rise in copper and the 1.71 percent rise in the Dalian iron ore future. That said, both commodities are still down 3 percent and 18 percent, respectively, this month. So, the AUD's underperformance (down around 1.65% against the EUR and 3.45% against the GBP in March) is hardly surprising, 

That said, the slowdown in China's industrial profits growth could have played a role in pushing the Aussie dollar on the back foot. Ahead in the day, the AUD may extend losses if the relief rally in the equities and the copper and iron ore futures fizzles out. 

AUD/USD Technical Levels

A daily close above 0.7784 (March 22 high) would signal a bottom is in place at 0.7672 (March 21 low) and could yield a sustained rally to 0.7868 (50-day MA) and 0.7916 (March 14 high). On the downside, breach of support at 0.7712 (March 1 low) would open doors for 0.7672 (March 21 low) and 0.7654 (Dec. 5 high).