The Aussie is under increasing bearish pressure after breaching 0.6660 support.
Dwindling hopes of rate cuts and geopolitical tensions are boosting the US Dollar.
Fed speakers, US Retail Sales and a string of data from China will set the pair's near-term direction.
The risk-sensitive Aussie is one of the worst performers on Tuesday, succumbing to the US Dollar’s strength. Hawkish comments by ECB policymakers and the increasing uncertainty in the Red Sea have forced traders to reassess their rate cut expectations, which is boosting the US Dollar against most of its rivals.
In Australia, recent data has shown that consumer confidence deteriorated in January, which has increased negative pressure on the Aussie.
The focus today is on the US NY Fed Empire State Manufacturing Index and a speech of Fed’s Waller, a traditional hawk. The highlight of the week, however, will be Wednesday’s US Retail Sales data.
Also on Wednesday, a slew of macroeconomic data from China, with a particular interest on the Q4 GDP and December’s Retail sales might have a significant impact on the Aussie.
Technical analysis shows the pair under increasing bearish pressure after breaching the 0.6660 support area. The next downside targets are 0.6540 and 0.6520. Resistances are the mentioned 0.6660 and 0.6735
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
Hot
No comment on record. Start new comment.