- AUD/USD extends its falls towards the lowest levels since early January.
- US data push the US Dollar higher.
- The technical picture is bearish for the pair.
AUD/USD is trading around 0.7060, the lowest since early February 12th, when it hit 0.7050. A loss of that line will open the door to the lowest levels since early January.
US data came out better than expected. The forward-looking ISM Non-Manufacturing PMI beat with 59.7 points against 57.3 expected and far above 56.7 recorded in January. New Home Sales defied the downturn in housing and rose by 3.7% in December to 621K after 599K in November. And the IBD/TIPP Economic Optimism for March rose to 55.7 from 50.3 in February.
Earlier, the Australian Dollar was pressured by disappointing Corporate Profits figures and by low Chinese growth forecasts, which stand at 6-6.5% in 2019.
The RBA left interest rates as expected and RBA Governor Phillip Lowe speaks, later on, followed by the all-important GDP publication.
See: Australian GDP Preview: Low growth priced into AUD/USD, and watch for Lowe’s comments
AUD/USD Technical Analysis
AUD/USD is trading below the 50 and 200 Simple Moving Averages on the four-hour chart. Momentum is to the downside and the Relative Strength Index is also leaning lower, but remains above 30, indicating oversold conditions.
Support awaits at the fresh low of 0.7060, followed by the February low of 0.7050 and the round number of 0.7000.
Resistance is at 0.7070 which supported the pair early in March, followed by 0.7085 that held the pair down earlier in the day and 0.7110 that provided support in mid-February.