The AUDUSD is returning around 0.6650, having picked up new offers after a brief stop in the US Dollar gain on Friday morning. The Australian dollar seems unconcerned by increased US-China tensions after the US and Taiwan signed an agreement on the first phase of the ’21st Century’ trade treaty.
Powell looked around. The prior drop in the Australian dollar might be connected to the wide US Dollar rally fueled by hawkish Fed bets and prospects of no US default.
However, the current difficulties to the US debt ceiling deal, as well as conflicting concerns over US-China relations, appear to spur greenback buyers, allowing the pair to retain weekly losses during a lackluster day. It is worth mentioning that the previous day’s poor Australian jobs report weighed on the AUDUSD pricing.
AUDUSD fails to keep up its rebound from a multi-day bottom.
Although picking up bids early Friday, the AUDUSD remains defensive at 0.6630, bouncing off a one-week-old falling resistance line within a rising trend channel established in March.
It’s worth mentioning that the Aussie pair had dipped to its lowest levels in three weeks the previous day due to broad US Dollar strength, but the greenback’s retreat ahead of the top-tier events spurred the AUDUSD rebound from the lower line of a 2.5-month-old bullish channel.
The RSI (14) line below 50 might provide power to the corrective rebound. However, the news reported a convincing upside breach of a seven-day-long declining resistance line, at 0.6635. It is vital to recollect the AUDUSD purchasers.
Nonetheless, the weekly high of roughly 0.6710, as well as the confluence of the 100-day moving average and the 38.2% Fibonacci retracement of the pair’s run-up from October 2022 to February 2023, near 0.6785, might pose a challenge to the AUDUSD bulls.
Alternatively, a daily closure below the indicated channel’s bottom line, near the 0.6600 round figure, might soon send the Aussie bears to the 61.8% Fibonacci retracement level of about 0.6550.
