AUD/USD rises toward 0.7600 after Yellen signals rate hike in March

AUD/USD tested daily lows after the release of Janet Yellen speech but then bounced to the upside and reached fresh highs. 

The pair fell to 0.7549 immediately after the release of the speech but then, amid a decline of the US dollar in the market, climbed to 0.7590. Price was holding near the highs, with the greenback now under pressure in the market. 

Profit taking? 

Yellen pointed to toward a rate hike in March but despite the strong signals, the US dollar turned to the downside. Market was probably discounting those words and after the speech, some profit taking could have hit the dollar. 

Fed's Yellen: Rate hike at next meeting "would likely be appropriate" if data is good enough

Despite the recent recovery, AUD/USD is still headed toward an important weekly loss, the worst performance since December. 

After being unable to hold above 0.7700 the pair made a bearish correction. The recent recovery, erased part of USD strength, but the short-term trend continues to favor the greenback.