AUD/USD: sidelined awaiting Tokyo's sentiments and US GDP, on track for 0.7600 or 0.7400?
|Currently, AUD/USD is trading at 0.7465, up 0.01% on the day, having posted a daily high at 0.7473 and low at 0.7462.
Forex today: trading political and Central Bank ricochets, awaiting US GDP
AUD/USD is currently sidelined in early Asia while markets await the next catalyst in US GDP tonight. The Aussie was -0.03% down at 0.7472 within a range of 0.7440-0.7492 during the US session and it doesn't look anymore lively for today. The US data came with durable goods orders that rose 0.7% in March (vs 1.3% expected), with ex-transport orders falling 0.2% - the first decline since June 2016. Wholesale inventories fell 0.1% (vs +0.2% expected). Analysts at Westpac explained that the earlier break below the 0.7500-0.7600 range has been sustained, and targets the 0.7400 area; "The US Administration’s trade protectionist policies are weighing."
AUD/USD 1-3 month:
The same analysts at Westpac noted that the modestly weaker than expected Australian CPI outcome has added yet another factor capping the AUD/USD and softer commodity prices; "a more protectionist stance from US President Trump, and higher US yields if the Fed raises rates in June as we expect. These leave the AUD/USD with strong resistance at 0.76. We expect to see it heading towards 0.74 by year end, (26 Apr)."
AUD/USD levels
Valeria Bednarik, chief analyst at FXStreet explained that the technical indicators have barely bounced from oversold readings, " Additional declines will likely depend on of Asian markets' behaviour and the above mentioned macroeconomic releases. Should the pair challenge the mentioned daily low, the main bearish target comes at 0.7250 a mid-term strong static support."
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