- AUD/USD bears remain in charge and target 0.72 the figure.
- Fed expectations continue to favour a strong US dollar.
AUD/USD has been stabilising in recent trade following a sell-off overnight into the lows of the Asian session near 0.7264. At the time of writing, AUD/USD is down some 0.12% around 0.7270 after sliding from 0.7283 on the session so far.
There has been little in the way of a catalyst out there on the economic calendar but China reported its trade balance in recent trade. A surplus of US$94.46bn was reported with exports +20.9% YoY and imports +19.5% YoY.
Meanwhile, the data failed to move the needle and instead, the US dollar is has been attempting to correct which has weighed on the Aussie. A slightly risk-off environment has also played its role with US equity markets softening overnight and reversing the recent upward trend.
The hawks continue to circle over the Federal Reserve and Lael Brainard said the Fed could raise rates as soon as asset purchases are terminated, which is due to occur in March.
We now look ahead to the Fed interest rate decision later this month, with New York Fed president, John Williams, the only speaker slated before the blackout period officials start this weekend. There could be some price action in the greenback centred around his comments that would potentially see the stock markets and the Aussie reacting in kind. US Retail Sales is also on the cards as a potential market mover.
AUD/USD technical analysis
Meanwhile, from a technical outlook, the price action since the prior analysis has moved in on the old resistance and a break there opens risk to the 38.2% Fibonacci and the neckline of the W-formation near 0.7250:
Below there, it can be argued that there is another W-formation, depending on the broker and close of the candle. However, it is a compelling level nonetheless as it meets the 0.72 figure and a confluence of the 61.8% Fibonacci level as follows:
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.