Currently, AUD/USD is trading at 0.7643, down -0.26% or (19)-pips on the day, having posted a daily high at 0.7687 and low at 0.7636.
Today's US economic docket was jam-packed as market participants were exposed to multiple 'high impact' news releases that added the extra-boost the US dollar needed for weeks. Furthermore, Fed's Yellen testimony confirmed how the Federal Reserve is not behind the curve and 3-hikes are doable in 2017; a March hike?
The greenback's bullish narrative continued as the Consumer Price Index YoY (CPI) printed 'a better than expected' 2.5% figure, 0.4% more than previous and 0.1% above consensus. Although, one can argue a marginal increment, the result indicates ongoing and positive growth. On the other hand, long-aussie traders have played China's stable outlook and aligned their bets as in the next 10-hours the Employment change and Unemployment rate hit the markets.
Historical data available for traders and investors indicates during the last 7-weeks that AUD/USD pair, a commodity-linked currency, had the best trading day at +1.18% (Jan.17) or 89-pips, and the worst at -0.81% (Jan.18) or (61)-pips.
Technical levels to consider
In terms of technical levels, upside barriers are aligned at 0.7695 (high Feb.2-Feb.14), then at 0.7777 (high Nov.8) and above that at 0.7834 (high April.21). While supports are aligned at 0.7576 (low Feb.2), later at 0.7512 (100-DMA) and below that at 0.7450 (50-DMA). On the other hand, Stochastic Oscillator (5,3,3) seems to revert its previous intentions to push higher and turns bearish for now. Therefore, there is evidence to expect further Aussie losses where bears may expect to drag the pair lower towards 0.7512 handle.
On the long term view, if 0.7834 (high April, 2016) is in fact, a relevant top, then the upside is limited at 0.7809 (short-term 38.2% Fib). Furthermore, if the RBA has 'no ammo' nor tangible reasons to increase rates in 2017, the interest rate advantage should decreased organically as the Federal Reserve continues increasing rates with 3-hikes in the next 16-months. To the downside, supports are aligned at 0.7433 (short-term 23.6% Fib), later at 0.7182 (reverse long-term 61.8% Fib) and below that back to 0.6826 (low Jan.2016).
AUD/USD analysis: rejected from 0.7700, but downside still limited
© 2013 "FXstreet.com. The Forex Market" Todos los Derechos Reservados. Todos nuestros esfuerzos están destinados a proporcionar información precisa y completa. Aún así, con los centenares de documentos disponibles, a menudo publicados con poco margen de tiempo, no podemos garantizar la falta de errores en los mismos. Cualquier publicación o redistribución de contenido de FXstreet.com está absolutamente prohibido sin el consentimiento previo por escrito de FXstreet.com.
Recommended content
Editors’ Picks
EUR/USD edges lower toward 1.0700 post-US PCE
EUR/USD stays under modest bearish pressure but manages to hold above 1.0700 in the American session on Friday. The US Dollar (USD) gathers strength against its rivals after the stronger-than-forecast PCE inflation data, not allowing the pair to gain traction.
GBP/USD retreats to 1.2500 on renewed USD strength
GBP/USD lost its traction and turned negative on the day near 1.2500. Following the stronger-than-expected PCE inflation readings from the US, the USD stays resilient and makes it difficult for the pair to gather recovery momentum.
Gold struggles to hold above $2,350 following US inflation
Gold turned south and declined toward $2,340, erasing a large portion of its daily gains, as the USD benefited from PCE inflation data. The benchmark 10-year US yield, however, stays in negative territory and helps XAU/USD limit its losses.
Bitcoin Weekly Forecast: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.
Week ahead – Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.