Friday sees considerable selling pressure on the AUD/USD pair, which reduces some of the previous day’s significant advances to the highest level since August 26.
The pair is trading close to the daily low, in the mid-0.6900s, as the European session gets underway.
The US Dollar is being helped by a number of reasons to launch a moderate recovery from a seven-month low, which hurts the AUD/USD pair.
The recent publication of US consumer inflation data on Thursday served to confirm investors’ anticipation that the US central bank will moderate its hawkish outlook.
Additionally, a number of FOMC members supported a 25-bps lift-off in February, which should restrain US bond rates and put the USD bulls on the back foot to restrain them.
In addition, the likelihood that the Reserve Bank of Australia (RBA) will increase interest rates again in February supports expectations that some dip-buying may emerge in the AUD/USD pair.
Spot prices are still on track to finish positive for the fourth straight week.
|
Daily SMA20 |
0.678 |
|
Daily SMA50 |
0.6729 |
|
Daily SMA100 |
0.6634 |
|
Daily SMA200 |
0.6834 |
