- AUD/USD remains depressed inside a choppy range around two-week top.
- Market sentiment turns sour amid mixed concerns over Russia-Ukraine.
- China headlines, cautious mood ahead of Xi-Biden call also challenge bulls.
AUD/USD snaps three-day rebound from a monthly low during Friday’s Asian session, recently sidelined near the intraday low of 0.7370.
In doing so, the Aussie pair portrays the market’s anxiety ahead of the key telephone call between US President Joe Biden and his Chinese counterpart Xi Jinping, over multiple issues including the Ukraine-Russia crisis.
Ahead of the meeting, China’s Foreign Ministry confirmed that China and Russia met on March 17 to discuss security cooperation. It’s worth noting that Beijing previously denied the US allegations of readiness to help Moscow in the battle with Ukraine.
On a different page, Reuters mentioned that China reported 2,416 new confirmed coronavirus cases on March 17, the country's national health authority said on Friday, compared with 1,317 a day earlier.” It’s worth noting that the COVID-19 daily infections were easing in the last two days from the record top. On the contrary, reports of factory production restart in five districts of Shenzen keep buyers hopeful.
Elsewhere, Turkey is also trying to connect Russian President Putin and his Ukrainian counterpart Volodymyr Zelenskyy but hasn’t got any confirmation. Adding to the risk-off mood are the fears of Russian default.
However, the continuation of the talks and upbeat Aussie jobs report, coupled with the softer USD due to the downbeat yields, put a floor under the AUD/USD prices.
Moving on, geopolitical updates will be crucial for the AUD/USD prices amid a light calendar ahead.
Technical analysis
Should the AUD/USD prices drop below the 0.7370 immediate range support, a downward trajectory towards the 200-DMA level near 0.7300 can’t be ruled out. Alternatively, an ascending trend line from January 13, close to the 0.7400 threshold by the press time, challenges the pair’s upside moves.
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 climbs above $2,340 following earlier drop
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%.