- The Aussie is in play above 0.7300 as the USD remains off-kilter.
- Thursday’s action saw the AUD/USD make slim gains despite middling for most of the day.
AUD/USD is trading just above the 0.7300 major level heading into Friday’s trading window, continuing to find support after a mid-week Dollar crunch sent the Greenback into a slide across the charts.
Little is to show on the Aussie economic conetPrivate Sector Credit at 00:30 GMT, with the annual figure expected to come in at 4.36% while the monthly figure is seen flagging behind at 0.4%.
US Federal Reserve chair Jerome Powel was notably more bearish at the mid-week than he was in early October, when the Fed head Powell noted that current rates were far below, but Wednesday’s rhetoric saw the Fed overly cautious, with Powell warning that rates are now “much closer to neutral than expected”, sending risk sentiment broadly higher as investors relished in the prospect of a Fed with a restrained pattern of inflation.
AUD/USD levels to watch
AUD traders could be looking for a lift in Friday’s early session, according to FXstreet’s own Valeria Bednarik: “now trading barely above the 0.7300 level, the risk remains skewed to the upside, as the pair is firmly above its moving averages, with the 20 SMA advancing modestly above the 100 SMA, as technical indicators try to stabilize well above their midlines after correcting extreme overbought conditions. The pair could correct lower on a break below the mentioned daily low, targeting then the 0.7250 static support level. An unlikely break below this last should signal a downward extension for the following sessions while another attempt through 0.7340 should open doors for a steeper recovery.”
Support levels: 0.7295 0.7250 0.7220
Resistance levels: 0.7340 0.7375 0.7400
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