AUD/USD Price Analysis: Retreats from 100-SMA on softer Aussie Wage Price Index
- AUD/USD extends pullback from weekly top, renews intraday high of late.
- Australia’s Q1 2022 Wage Price Index eased from market forecasts.
- Failures to cross 100-SMA, RSI pullback directs sellers toward 50-SMA.
- Weekly support line, one-month-old trend line resistance act as additional trading filters.
AUD/USD sellers attack 0.7000 psychological magnet as traders consolidate recent gains after downbeat Australian data during Wednesday’s Asian session.
That said, Australia’s quarterly Wage Price Index reprinted 0.7% QoQ growth, versus the 0.8% forecast, while the yearly numbers eased below 2.5% anticipated to 2.4%.
Read: Aussie wage price index miss weighs on AUD/USD
That said, the Aussie pair’s weakness to cross the short-term key moving average joins the recently easing bullish bias of the MACD and softer RSI (14) line to keep sellers hopeful.
However, the 50-SMA and the one-week-old support line, respectively around 0.6965 and 0.6930, will challenge the AUD/USD bears before activating the next round of southward trajectory.
On the contrary, a sustained break of the 100-SMA, around 0.7045 by the press time, will direct AUD/USD prices towards the one-month-old resistance line near 0.7090.
Following that, the 0.7100 threshold may act as an extra filter to test the buyers before directing them towards the monthly high surrounding 0.7265-70.
AUD/USD: Four-hour chart
Trend: Further weakness expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
