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AUD/USD trudging up after bouncing from 0.7550

4/26/2018, 10:30:06 AMMarket Analysis
AUD/USD trudging up after bouncing from 0.7550

The AUD/USD is continuing to trade slightly up in Thursday's early Asia session, testing into 0.7580 after hitting a new bottom of 0.7552 yesterday.

The Aussie is catching a slight boost from the Import/Export Price Indexes, which managed to print an upside surprise for both figures. The Australian Import Price Index came out at 2.1% compared to the expected 1.3%, beating the previous reading of 2.0%, while the Export Price Index printed a 4.9% increase compared to the previous 2.8%, and a beat of the expected 4.1%.

AUD/USD: can the bears take out 0.7500? - UOB

Trade figures notwithstanding, the AUD is trading in a bad way against the Greenback, and rising US Treasury yields are driving the USD higher across the broader FX market. With little else on the macro calendar for the Aussie this week, USD-pairs are already looking to Friday, when the US sees preliminary GDP figures for 2018's Q1, expected at 12:30 GMT, and the headline annualized GDP for Q1 is expected to come in at 2.3%, a decline from the previous reading of 2.9%.

AUD/USD Levels to watch

The Aussie technical outlook remains unchanged in the Asia session, and the bearish bent to the charts is making it difficult for Aussie traders to find a safe spot to bid at, as noted by FXStreet's Valeria Bednarik: "down for a fifth consecutive day, speculative interest is targeting what could be considered a major inflection point, 0.7501, the low set last December. Below it, the pair has room to extend its decline toward 0.7250, the next long-term relevant support. In the meantime and for the shorter term, the pair is at risk of extending its decline, as technical indicators consolidate well below their mid-lines, and the RSI in fact at oversold levels, while the 20 SMA has extended its decline, now acting as dynamic resistance around 0.7610."

Support levels: 0.7550 0.7500 0.7470

Resistance levels: 0.7580 0.7620 0.7660