The AUDUSD pair is trading at 0.7640 after starting the day at 0.7656 and falling to a low of 0.7644 in early trade. The Aussie dollar has been under pressure as weak economic data from China weighed on risk sentiment and boosted demand for safe-haven assets such as the US dollar.
However, the Australian currency found some support after minutes from the Reserve Bank of Australia’s (RBA) latest policy meeting revealed that policy makers were not concerned about recent falls in inflationary pressures and saw no need to cut rates in the near-term.
Looking ahead, traders will be closely watching Chinese economic data for any further signs of weakness which could weigh on risk sentiment and send the AUD/USD lower while a positive surprise could see it regain some lost ground. You need to follow the instructions when you make a new trade-
- Although the bears are in control, the stalling negative momentum indicates a turn around is possible.
- A higher correction is expected
- With the ichimoku cloud resistance above we expect gains to be limited
- We therefore, prefer to fade into the rally with a tight stop in anticipation of a move back lower.
Recommendations: Sell/Sell limit @ 0.68200 Target/TP: 0.67500
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audusd technical analysis on dated 07-10-2022
