- AUD/USD is currently trading at 0.7123 between a range of 0.7165 and 0.7116.
- AUD/USD awaits the RBA’s semi-annual Financial Stability Review at 11.30am AEST/00.30 GMT.
The dollar was firmer overnight, rallying form the 97.80s into the 97 handle and scoring a high of 97.19. The highlights overnight came with the US Federal Reserve vice chair Clarida re-emphasising the Fed’s patience while the FOMC voting member Bullard advocates for no further rate rises, forecasting that the yield curve will steepen as Q2 and Q3 data is published. Then, for data, the US PPI came in at its strongest increase in five months, up 0.6% m/m in March. From Europe, March CPI data for both Germany and France were aligned with market expectations. German data came in at 0.4% m/m, while the French data was at 0.8% m/m, providing markets with some assurance.
Looking ahead
In Australia, we will see the bi-annual RBA Financial Stability Review released where the key topics of interest, according to analysts at Westpac, will be their assessment of the housing market, tightening lending practices, and short-term funding rates. We will also have China’s Mar trade balance which is anticipated to be a $5.7bn surplus following +$4.1bn in Feb.
AUD/USD levels
AUD/USD found demand at the 17th March highs as bears paused above of today’s data events. Valeria Bednarik, the Chief Analyst at FXStreet, explained that the AUD/USD pair lost its positive momentum:
“The 4 hours chart suggest that the decline may continue during the upcoming sessions, given that the price broke below its 20 SMA, which lost its upward strength and turned flat. Technical indicators in the mentioned chart entered negative territory, losing part of their downward momentum but maintaining their downward slopes, in line with further slides ahead.”
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