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  • AUD/USD is trading in a narrow range around a two-week high.
  • In the wake of mixed concerns over Russia-Ukraine relations, market sentiment deteriorates.
  • Bulls are also hampered by headlines from China and cautious sentiment ahead of Xi-Biden’s call.

In Friday’s Asian session, the AUD/USD price showed a three-day rebound from a monthly low after recently pulling back from an intraday low of 0.7370.

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Xi-Biden talks

In anticipation of a key phone call between US President Joe Biden and his Chinese counterpart Xi Jinping over several topics, including the Ukraine-Russia crisis, the Australian dollar shows market anxiety.

The Chinese Foreign Ministry confirmed that China and Russia met on March 17 to discuss security cooperation ahead of the meeting. However, Beijing has previously denied US assertions that it is willing to assist Moscow in its fight against Ukraine.

Covid in China

Additionally, Reuters reported that China reported 2,416 new confirmed Coronavirus cases on March 17, up from 1,317 the day before, the country’s national health agency said on Friday. There has been a steady drop in COVID-19 infections after reaching a record high over the past two days. However, reports that Shenzhen’s five districts are starting to produce again give buyers hope.

Failed mediation by Turkey

Turkish officials are also trying to link Russian President Putin to his Ukrainian counterpart Volodymyr Zelenskyy, but they have not been successful. Fear of a default by Russia is also compounding risk aversion.

What’s next for AUD/USD price analysis?

However, the AUD/USD pair found support on the back of continuing talks, an upbeat jobs report, and a weaker US dollar on unfavorable yields.

Geopolitical news in a thin calendar will be critical for the AUD/USD rate shortly.

AUD/USD price technical analysis: Bulls eying 0.7440

aud/usd price

The AUD/USD price looks at a multi-month top around 0.7440. The pair seems strongly bullish as the 4-hour SMAs point upwards. The Aussie is currently consolidating gains around 0.7375-80 area. The broken descending trendline shows that the bulls have regained strength and may resume further upside after a mild downside correction. The volume is dropping during the consolidation phase, which indicates that the pair is looking for a catalyst to move further.

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AUD/USD price analysis via daily open interest

aud/usd price

The daily open interest has been falling while the pair is rising. It indicates that the sellers are taking profit while buyers are not jumping in. Hence, the upside may remain capped at certain levels.

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