Aussie reduced some losses on the back of a lower dollar, but the overall bearish trend remains unchanged.
On Thursday, the Australian Dollar(Aussie) rose slightly, helped by a weaker US Dollar. The pair has recovered some losses, rising above 0.6550, but the overall trend remains negative.
Australian data produced mixed results; the attention is now on US housing and unemployment claims figures.
Australia’s data has been mixed. Consumer inflation expectations were stable at 4.5% in January, while the number of employed people unexpectedly fell, indicating that the labor market is losing steam. Macroeconomic data China’s GDP increased by 5.2% in 2023, falling short of market expectations of 5.3%. Aside from that, retail sales fell short, raising concerns about the sluggish post-COVID recovery and impacting on the Aussie, given China is the country’s biggest trading partner.
AUDUSD Technical Outlook
AUDUSD is expected to see resistance at 0.6545 and 0.6640.
From a broader viewpoint, the Aussie retains its negative bias, with the bearish cross in the 4h SMAs lending weight to the pair. Australian bulls are likely to face resistance between 0.6595 and 0.6640. On the downside, supports are 0.6520 and 0.6450.
