AUDUSD is trading around 0.6525, up 0.14% ahead of the top-tier US data.
The AUDUSD pair is under pressure in the Asian session. As investors are concerned about likely Chinese deflation. And hawkish statements from Federal Reserve members. The main pair is presently trading around 0.6525, up 0.14% on the day.
However, Mary C. Daly, President of the Federal Reserve Bank of San Francisco. Remarked on Thursday that there is a lot more material. To review and that it is too early to predict if future rate hikes or a protracted period of holding would occur. Rates must be paid. This, in turn, limits the Aussie’s upward potential and acts as a headwind for the pair.
Moreover on Friday. Market participants will be looking for the US Producer Price Index (PPI).PPI will be released later in the American session. The PPI figure is predicted to increase from 0.1% to 0.7% year on year.
In addition, the Consumer Confidence Survey from the University of Michigan (UoM) will be submitted during the American session.
Technical Outlook
Technically, the AUDUSD pair trades below the 50- and 100-hour EMAs. With a downward slope on the four-hour chart. Indicating that moreover the pair’s path of least resistance is to the downside.
Furthermore any significant follow-through buying over 0.6540. (The Bollinger Band’s midpoint) might pave the road to the next resistance level at 0.6575.
On the other hand this grade levels. For the time being, the RSI is below 50. Posing a challenge to the pair’s immediate decline. For the time being, the RSI is below 50, posing a challenge to the pair’s immediate decline.
