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AUD/USD set to continue two-day slump on Friday

3/9/2018, 11:14:38 AMTrading Strategies
AUD/USD set to continue two-day slump on Friday

The AUD/USD is sluggish but on the low side in Tokyo trading, currently rotating around the 0.7785 region.

The Aussie continues to drift against the US Dollar as middling economic data for the island country continues to push the Reserve Bank of Australia (RBA) against a wall, leaving the central bank with few options other than to wait and see if inflation will ever start to pick up within the Australian economy.

Market reaction was muted, and the AUD was left unchanged following mostly-positive CPI figures from China. The Chinese Producer Price Index came in at 3.7%, a mild miss of the forecast 3.8% and a greater-than-expected contraction from the previous 4.3%, but month-on-month CPI numbers printed at 1.2 for February, a clean but of the anticipated 0.8% and the prior period's 0.6%. The Aussie is left almost unchanged on reaction and is still on the low side of Thursday's market close.

Nothing else remains on the economic calendar for the AUD this week, and the pair heads into Friday's trading at the mercy of market sentiment.

AUD/USD Technicals

The pair is trading squarely into its 200-day SMA, and the 34 EMA is now providing some stiff resistance as the pair struggles to break out of its current levels. The H4 candles are pricing in a possible lift this week, but any bullish momentum will need to hold above 0.7735 if new highs are going to be reached. Intraday support is sitting at 0.7770 and 0.7755, with resistance at 0.7810 and 0.7840.