Fxstreet.com (Barcelona) - The AUD/USD rose today on increased risk appetite as US stocks rallied. The pair fell overnight as Australia's Q4 2008 GDP unexpectedly contracted for the first time in eight years as exports and housing slumped, increasing pressure on the Reserve Bank of Australia to resume cutting interest rates.

The plunging Australian services PMI also pressured the AUD/USD overnight; however, increased risk appetite reversed the overnight decline. The Australian dollar is trying to form a bottom, following nearly 35% depreciation since the summer.

The AUD/USD is at an interesting technical area, said Hans Nilsson, an expert analyst at CMS Forex. There is support from the lower band in the upward sloping trading channel that goes back to October's low as well as resistance from the downtrend since last summer. If this downtrend is broken, the AUD/USD will rally strongly.