AUD/USD: subdued on confidence data, awaiting key jobs/US CPI

  • AUD/USD: little reaction on data.
  • AUD/USD: capped by 200-H SMA.

AUD/USD remains subdued ahead of the Tokyo open, currently, the pair is trading at 0.7857, down -0.02% on the day, having posted a daily high at 0.7863 and low at 0.7852.

The Westpac consumer confidence for February came n at  -2.3% m/m vs prior +1.8% and the Aussie showed little reaction in quiet markets that are instead holding out for more important news events late in the week, namely US CPI and Aussie jobs data.

AUD/USD price action overnight

From the price action overnight, the Aussie was choppy and fragile in London, dropping to 0.7828 from 0.7870 and closing at 0.7858 in NY.

The bulls can't seem to get their head above the 200-H SMA, while crosses seem to be taking up the driving seat for the major commodity currency with a focus on the yen and euro. EUR/AUD was pressuring overnight while unwinding of the AUD/JPY carry came to the rescue as risk improved and helped the Aussie back above 0.7850 and current aforementioned spot.

AUD/USD levels

Technically, Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart indicates decreasing buying interest, as the intraday advance stalled below the 0.7890 Fibonacci resistance, with the 200 EMA converging with it. In the same chart, technical indicators eased within positive territory, supporting some further slides ahead. The 20 SMA, however, maintains its bullish slope, heading higher around 0.7820.

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