AUD/USD analysis: Aussie heavy ahead of PPI release

Valeria Bednarik FXStreet

AUD/USD Current price: 0.7468

The AUD/USD pair fell for a fourth consecutive day, down to 0.7439, its lowest since mid January, as commodity-related currencies suffered from a decline in oil and base metals prices. The pair managed to recover some ground from the mentioned low, but still settled below previous April low, increasing chances of a bearish continuation for this Friday. In the macroeconomic front, Australia will release its first quarter PPI alongside with private sector credit figures for March. If the first is a miss, the downward potential will likely increase. Short term, the technical picture is clearly bearish, as in the 4 hours chart, the 20 SMA turned further lower above the current level, whilst technical indicators have barely bounced from oversold readings, although additional declines will likely depend of Asian markets' behavior 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.

Support levels: 0.7450 0.7410 0.7370

Resistance levels: 0.7500 0.7530 0.7570

View Live Chart for the AUD/USD

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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