- AUD/USD consolidates pullback from three-week high, sidelined of late.
- Australia’s Q1 2022 GDP is estimated to have softened by 0.7% QoQ.
- Bearish chart pattern, RSI retreat keeps sellers hopeful.
- 200-SMA adds to the downside filters, recovery moves have multiple hurdle to tackle.
AUD/USD picks up bids to 0.7178 as bears lick their wounds after the quote’s U-turn from a three-week high. In doing so, the Aussie pair consolidates the first daily loss in four ahead of the key Australia Q1 Gross Domestic Product (GDP) release during Wednesday’s Asian session.
Also read:
The AUD/USD pair’s pullback the previous day portrays a rising wedge bearish chart pattern on the four-hour play. The downside bias also gains support from the RSI (14) retreat.
However, the 200-SMA offers an additional barrier to the south around 0.7120, in addition to the stated wedge’s support line near 0.7135.
Should the quote drops below 0.7120, theory backs bears to expect a fresh yearly high under the previous month’s trough of 0.6828. During the fall, the 23.6% Fibonacci retracement (Fibo.) of April-May fall, around 0.7030, as well as the 0.7000 psychological magnet may offer intermediate halts.
On the flip side, recovery moves need to reject the wedge formation, by crossing the 0.7220 immediate hurdle, to convince short-term buyers.
Even so, the 50% Fibo. level and the previous monthly high, respectively around 0.7245 and 0.7270, can challenge the upside momentum past-0.7220.
Overall, AUD/USD teases bears ahead of the key Aussie data but the downtrend requires strong disappointment from scheduled data and has multiple challenges.
AUD/USD: Four-hour chart
Trend: Grinds lower
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD regains traction, recovers above 1.0700
EUR/USD regained its traction and turned positive on the day above 1.0700 in the American session. The US Dollar struggles to preserve its strength after the data from the US showed that the economy grew at a softer pace than expected in Q1.
GBP/USD returns to 1.2500 area in volatile session
GBP/USD reversed its direction and recovered to 1.2500 after falling to the 1.2450 area earlier in the day. Although markets remain risk-averse, the US Dollar struggles to find demand following the disappointing GDP data.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
XRP extends its decline, crypto experts comment on Ripple stablecoin and benefits for XRP Ledger
Ripple extends decline to $0.52 on Thursday, wipes out weekly gains. Crypto expert asks Ripple CTO how the stablecoin will benefit the XRP Ledger and native token XRP.
After the US close, it’s the Tokyo CPI
After the US close, it’s the Tokyo CPI, a reliable indicator of the national number and then the BoJ policy announcement. Tokyo CPI ex food and energy in Japan was a rise to 2.90% in March from 2.50%.