AUD/USD Analysis: current correction could extend down to 0.7100
|AUD/USD Current Price: 0.7151
- Australian Q1 inflation to be out next Wednesday.
- Slow start to the week as Australian markets will be closed on Easter Monday.
The AUD/USD pair closed the week with modest losses at 0.7150, retreating from a fresh one-month high of 0.7250 on Thursday on the back of broad dollar's strength. Despite Australian employment data came in better-than-expected, the Aussie fell on the back of the poor performance of Asian and European equities, and encouraging US data that reduced concerns about a possible economic slowdown in the world's largest economy. US equities managed to trim losses in the last active day of the week, which helped to keep the pair within familiar levels. Australia is on a long weekend holiday, with local markets to remain closed this Monday, which anticipates some limited market moves for the upcoming Asian session. Relevant data will be released next Wednesday when the country will unveil Q1 inflation measures.
The AUD/USD pair offers a neutral-to-positive stance, as in the daily chart, it continues trading between directionless moving averages, with the 200 DMA capping the upside at around 0.7200 and the 100 DMA acting as a dynamic support at around 0.7135. Technical indicators retreated within positive levels, now consolidating just above their midlines, a sign that selling interest remains limited. In the 4 hours chart, the pair is below its 20 SMA while above the larger ones, as technical indicators hold within negative ground, suggesting a possible short-term decline toward the 0.7100 price zone.
Support levels: 0.7135 0.7090 0.7055
Resistance levels: 0.7170 0.7205 0.7250
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