AUD/USD due a correction on key week after Friday's sell-off?
|AUD/USD is a little indecisive in early Asia due to the big moves on Friday on Fischer's CNBC interview after Yellen's Jackson Hole hawkishness.
USD soars on Friday amid Fed talking
Fischer suggested that Yellen's comments were in line with the view that a rate hike is due in September and the greenback took off. AUD/USD dropped from 0.7691 and has traded as low as 0.7545. However, as we head in to September's business this week, the nonfarm payrolls will be key on Friday and given the recent estimate of GDP for Q2 lower again, it may take a very strong outcome to solidify speculation that indeed a September rate hike is on the cards. The week ahead will also heat up for the Aussie prior to that data with the Chinese numbers due.
Key Chinese data on the way - BBH
AUD/USD levels
Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, the price has broken below its 20 SMA and 200 EMA. "This last converging with a long term Fibonacci resistance at 0.7600, while technical indicators pared losses near oversold readings. As long as the price remains below the mentioned 0.7600 level, there's room for a bearish extension down to 0.7450, another critical Fibonacci support, the 38.2% retracement of this yearly rally."
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