- Minimal US economic data this week gives Australian data greater scope.
- RBA meeting minutes and Chinese GDP to drive AUD volatility tomorrow.
- AUD/USD death cross could lead to yet another 0.67 break.
AUSTRALIAN DOLLAR FUNDAMENTAL BACKDROP
The Australian dollar is yet to recover from its fall last week Friday against the U.S. dollar after some hawkish commentary from the Fed’s Waller and better than expected data via the Michigan consumer sentiment report. Some optimism came from China (key Australian trading partner) this morning whereby the PBoC held the 1-Year MLF rate constant art 2.75% that may be an indication to markets that they believe economic growth is on track. Chinese GDP is scheduled for tomorrow (see economic calendar below) and if actual data fall somewhere near the 4% forecast, commodity markets could rally (higher demand-side projections) opening up some upside for the AUD.
AUD/USD DAILY CHART
Daily AUD/USD price action manages to hold its head above the 0.6700 psychological support handle although ominous signs stem from the death cross (red) formation unfolding via the 50-day and 200-day SMA respectively. This could point to a continuation of the medium-term downtrend after the upside consolidation phase looks to be fading.
Key resistance levels:
- 50-day MA/200-day MA (blue)
Key support levels: