- The Aussie’s Thursday recovery sees limited upside as the US Dollar remains bid through broader markets despite a US GDP miss.
- Friday will deliver one last blast of US economic figures to end the week.
The AUD/USD is trading near 0.7350 heading into the overnight session. The Aussie stabilized in Thursday’s trading after knocking into a new low for 2018 on Wednesday.
US GDP figures came on lower than expected yesterday, printing at 2.0% versus the expected 2.2%, but the Greenback continued to show strength across the markets, and the AUD’s chance to make a recovery on improved risk sentiment was hampered, and the AUD/USD is trading close to recent lows.
Friday is a limited showing for the Aussie, with low-tier Private Sector Credit figures for May due early at 01:30 GMT, with the m/m figure expected to come in at 0.4%, in-line with the previous reading. HIA Home Sales for April are also expected sometime Friday, which last printed at -4.2%, but a specific release schedule is absent and AUD traders will be keeping an eye out for the numbers.
On the USD side, Friday brings another dose of high-tier economic figures, with the Core Personal Consumption Expenditure Price Index due at 12:30 GMT, and the indicator is expected to tick higher slightly from 1.8% to 1.9%.
AUD/USD Levels to watch
Bearish action is widely expected for the Aussie, and as FXStreet’s own Valeria Bednarik noted, “the pair is intrinsically bearish, despite the ongoing short-term consolidative phase, as in the 4 hours chart, it is developing well below a sharply bearish 20 SMA, as the 100 SMA accelerates below the 200 SMA but well above the shorter one, while technical indicators attempt modest recoveries far below their midlines. The unconvincingly attempt to break lower, as it’s the third time the pair bounces from the 0.7340 region, does not suggest an upcoming recovery, neither diminish chances of a downward extension ahead.”
Support levels: 0.7345 0.7310 0.7275
Resistance levels: 0.7400 0.7430 0.7470
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