AUD/USD turns negative near 0.7760, eyes on US data, China GDP
|- Risk-off weighing gradually over the Aussie, as Europe kicks-off.
- Awaits fresh impetus from the US retail sales, RBA minutes and China data dump.
The AUD/USD pair returned to the red zone at the European open, reversing a brief recovery to near 0.7780 levels, with risk-off sentiment seen gathering momentum, as the European traders assess the implications of the US-led airstrikes on Syria, with Russia’s response eagerly awaited, which is likely to trigger US-Russia war.
Amid a renewed risk-aversion, the US dollar is seen attempting a tepid recovery across its main competitors, adding to the weight on the Aussie. The USD index regains the 89.50 barrier, bouncing-off lows near 89.40 levels.
Also, a bout of profit-taking in the spot, following last week’s rebound and ahead of plenty of risk events this week, cannot be ruled behind the fresh selling. Investors brace for the US retail sales data due later today while tomorrow’s RBA minutes and China Q1 GDP figures will shape the moves for the AUD in the coming days.
AUD/USD levels to watch
Brian Twomey, President at Brian’s Investment noted: “The target remains 0.7836 and 2 pips higher than previous 0.7834. Below 0.7764, the game plan is to reload longs at minor lines at 0.7731, 0.7729 and 0.7716. The main line is located at 0.7698. Above 0.7764 then on to 0.7836 by breaks at 0.7791. Target at 0.7836 is located just shy of major points at 0.7841 and 0.7864.”
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