AUD/USD: Poised to extend its current decline, but not for much

The AUD/USD pair hit 0.8006 on Thursday, a fresh three-year high, but it was all downhill from there. The aussie fell to 0.7730 on Friday, bouncing just modestly ahead of the weekly close. Nonetheless, the bearish potential is limited, Valeria Bednarik, Chief Analyst at FXStreet, informs.

Key quotes

“The Reserve Bank of Australia will announce its latest decision on monetary policy on Tuesday, while the country will publish Services PMIs on Wednesday. Australia will also publish Q4 Gross Domestic Product, foreseen at -1.8% and the final reading of January Retail Sales.”

“The US will also publish its official ISM PMIs next week, while Markit will release the final versions of its own indexes. On Friday, the US will publish the February Nonfarm Payroll report. At the time being, the market expects a 110K increase in job creation and an unemployment rate of 6.4%.”

“A steeper decline could be expected on a break below 0.7710, the immediate support level. The next relevant level is 0.7640, en route to 0.7563, the February low.”

“The most relevant resistance level is 0.7820, as if the aussie manages to run beyond it, it has room to extend its advance towards the 0.8000 threshold.”