- AUD/USD is currently trading at 0.7080, within a range of between 0.7085/91 in early Asia.
- Little action in the pair, but traders are monitoring trade noise, FOMC and Aussie jobs this week.
AUD/USD was changing hands around 0.7100 before a 10 pip move to the downside on the Bloomberg news claiming that Chinese negotiators were backing away from earlier pledges in trade talks – then followed a news that conflicted with a more optimistic piece in the Wall Street Journal.
Meanwhile, the RBA March meeting minutes reiterated the outlook for 3% growth in the Australian economy this year but with various downside risks, especially around housing as analysts at Westpac explained. “AUD/USD showed no real response, remaining close to 0.7100 through Sydney trade. But Australian bond and money market yields fell notably. The 3 year Commonwealth government bond yield slipped under 1.50% (the RBA cash rate) for the first time since 2016. The regional equity mood was mostly a little softer.”
“The AUD has firmed in line with stronger global risk appetite, despite increasing expectations that the RBA will cut rates relatively soon. Never more has the RBA directed the market to pay closer attention to labour market data, raising the stakes around the labour report on Thursday,” Greg Gibbs, Founder, Analyst, & PM
Amplifying Global FX Capital Pty Ltd explained.
Valeria Bednarik, Chief Analyst at FXStreet explained that from a technical perspective, the 4 hours chart shows that the pair was once again unable to surpass a bearish 200 SMA, now pressuring converging 20 and 100 SMA, with the shorter one maintaining its bullish slope.
“Technical indicators have retreated further, although the Momentum is now bouncing from its mid-line, while the RSI heads lower at 51, falling short of confirming further slides ahead. The bearish case would e confirmed on a break below 0.7040, March 14 daily low.”
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