“Looking technically at the 4 hour charts,” says Greg McKenna CEO at GlobalFX and former Head of Currency Strategy at the NAB and Westpac, “we see the AUD broke an old trendline and then the bottom of the box to head to an overnight low of 1.0448 before rallying a little in the last few hours. The daily charts suggest further losses and the Aussie would need to break back above 1.0480/85 to turn the short term outlook more positive once again,” the analyst concludes. With no domestic data to come out for last trading day of the week in 'down under', market attention will shift to Japan, where CPI and BoJ minutes will be released in short.
Immediate support to the downside for AUD/USD lies at recent fresh weekly lows 1.0443, followed by Oct 18 highs at 1.0410, and Jan 04 lows at 1.0392. To the upside, nearest term resistance comes at Nov 07 highs/past Friday's lows 1.0481/4, followed by Jan 14 lows/Wednesday's/Monday's highs at 1.0520/5, and lows and past Friday's highs at 1.0560.