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AUD/USD: bulls retreat

Kira Iukhtenko, FX BAZOOKA analyst

Bullish feast was not really long: Aussie dollar extends the downside for a fourth day in a row, weakening from the Friday’s high of $0.9135 to $0.8950. AUD’s decline is caused by the increased Chinese and Ukrainian woes.

Aussie remains vulnerable ahead of the Australia and China data releases on Thursday.  Australia is scheduled to release February labor market report (employment is expected to rise). Meanwhile, Chinese data forecasts are less optimistic: industrial production and retail sales growth is expected to have slowed down.

The technical picture looks pretty bearish now. However, the pair still has a chance to resume the upside as long as the $0.8900/8890 support holds (2013 lows, 50% from the Jan.-Mar. uptrend). A slide below this area would activate sell orders and bring the pair to the Jan. lows around $0.8665. Key resistance lies at $0.9080, $0.9100 and $0.9135. 

Chart. Daily AUD/USD

To contact the writer of this story: Kira Iukhtenko, analytics@fxbazooka.com 

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