- Holiday-thinned markets, US dollar pullback keep the Aussie side-lined.
- Technical set up remains in favor of the bears.
- US housing data unlikely to offer any fresh trading impetus.
The AUD/USD pair extends its consolidative phase near the midpoint of the 0.71 handle, having stalled its overnight minor bounce, in the wake of Easter holiday-thinned trades and a lack of fresh catalysts.
The spot managed to recover some ground from two-day lows of 0.7136 reached after the US dollar rallied hard across its main competitors following a big beat on the US retail sales data that eased concerns over the US economic slowdown. Bullish US data offset the strong Australian jobs report, and hence, the Aussie reversed the entire rally fuelled by the Australian data to the 0.7200 level.
Despite the recent bounce, the major remains exposed to further downside risks in the near-term, as the technical set up suggests a bearish bias, especially after “the Aussie pair confirmed the “rising wedge” bearish technical formation on Thursday when it slipped beneath the pattern support, at 0.7160 now. With this, the quote is likely to extend its south-run towards 0.7070. Though, an ascending trend-line stretched since early March might offer strong intermediate support at 0.7085,” as explained by FXStreet’s Analyst Anil Panchal.
Looking ahead, thin liquidity and minimal volatility could exaggerate the moves and the pair could test the 0.7100 support if the US dollar resumes its recent upside heading into the US housing starts and building permits data due later today. The data is likely to have limited impact on the markets.
AUD/USD Technical Levels
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