Dollar bulls had a strong run last Friday, but AUD/USD is pausing its slide at an area of interest.
Will the upcoming U.S. catalysts spur another big move?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
China reported fastest growth in new home prices in 21 months, as costs rose 0.5% month-over-month in March to mark third consecutive monthly increase
Chinese Defense Minister Li Shangfu reiterated country’s support for Russia’s invasion of Ukraine, pledged to strengthen coordination and close communication between military forces
New Zealand BusinessNZ services index down from 55.8 to 54.4 to reflect slower pace of growth in March, as the economy cooled down and general uncertainty set in
New Zealand’s food price index chalked up 0.8% month-over-month gain in March, following earlier 1.5% increase to suggest slowing consumer price pressures
Price Action News
Overlay of USD Pairs 15-min
Risk-off flow buoyed the safe-haven dollar higher across the board on Friday, before downbeat U.S. retail sales data forced the U.S. currency to take a breather during the New York session.
Still, the Greenback managed to squeeze out more gains against the yen early on in this week’s Asian session while starting on weak footing against the Loonie, Aussie, and franc.
U.S. Empire State manufacturing index at 12:30 pm GMT
Canada’s foreign securities purchases and wholesale sales data at 12:30 pm GMT
BOE member Cunliffe’s speech at 1:00 pm GMT
ECB head Lagarde’s speech at 3:00 pm GMT
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AUD/USD 1-hour Forex Chart by TradingView
This pair managed to pause at its mid-channel area of interest, as dollar traders seem to be reassessing what’s next.
A break from the current consolidation could send AUD/USD down to its ascending channel bottom near the .6650 minor psychological mark.
Even stronger selling pressure could take it down to S1 (.6620) of the Standard Pivot points, which is still well within the average daily volatility of 75 pips.
On the other hand, a return in risk-on flows or a downbeat surprise from the Empire State manufacturing index might spur some gains. This could take AUD/USD to the channel top that’s near the R1 at the .6800 major psychological level.
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