AUD/USD Turns Flat, 0.7600 Eyed
The AUD/USD pair erased most of its day's gain and is currently trading at 0.7627, nearly unchanged from yesterday's close of 0.7625.
Following
Wednesday's release of weak Australian CPI number that showed inflation
dropping below 0.0% has now fueled speculations of rate-cut by the
Reserve Bank of Australia, which eventually led to sharp declines in the
AUD/USD pair on Wednesday. With the overhang of an expected rate-cut,
the pair's near-term upside is likely to be capped. The pair did manage
to register a mild recovery on Thursday and on Friday, led by overall
USD weakness on BoJ disappointment.
Technical levels to watch
From
current levels, 0.7600 area (0.7600-0.7590 Wednesday's closing level)
seems to provide immediate support, which if broken should take the pair
towards 50-day SMA support near 0.7535 region. Failure to hold these
immediate support levels seems to open room for further downfall,
possibly below 0.7500 psychological mark, towards 0.7490-80 horizontal
area.
Meanwhile on the upside, day's peak near 0.7670 level
might continue attract fresh offers. Should the pair manage to clear
this immediate hurdle, it could witness further recovery towards
0.7720-25 area, which now seems to cap any further near-term upside for
the pair.
