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AUD/USD struggles through 0.73, taking its cues from external factors

2018-11-16 10:46:14Trading Strategies
AUD/USD struggles through 0.73, taking its cues from external factors

AUD/USD is currently trading at 0.7270 from a high of 0.7298 and off a low of 0.7228, helped off the post jobs data highs by Brexit angst and US stocks printing more red on the tape as Brexit drama intensifies and company earnings a cause for concern.


U.K. Prime Minister Theresa May’s leadership has been called into question after the Brexit Secretary Dominic Raab resigned, followed by cabinet minister Esther McVey less than 24 hours after she said she had received the approval of her cabinet for a draft Brexit plan. 


External factors, such as Brexit, will determine the currency's direction


The Aussie is sensitive to such political turmoil and risk sentiment which has upset the bull's efforts to take the currency over the line following yesterday's impressive jobs data - (Employment surged by +32.8k in Oct, driven by full-time (+42.3k) and the unemployment rate remained at a 6yr low around 5%). However, the numbers do not mean that the RBA is about to shift its stance on monetary policy and the central bank is on hold indefinitely meaning that external factors, such as Brexit, will determine the currency's direction.


AUD/USD levels


Technically, the daily doji candle suggested indecision and the pin bar is showing the there is strong opposition from the bear's to attempts through the 0.73 handles. However, yesterday's close above 0.7260 opens the prospects for sustained upside pressures towards 0.7450 and the 38.2% Fibo of the 2018 decline to recent daily lows. 0.7720 meets the 61.8% retracement target. To the downside, 0.7159 needs to give.