Bears weigh on the Australian dollar – Critical support at US$0.7585 holds

April 12, 2021 - 1 month ago
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The outlook for the Australian Dollar remains unchanged as the market continues to consolidate between the parameters US$0.7585 and US$0.7655.

The mild retreat from spot gold weekly highs has dampened the bullish sentiment also.

On the data front, the Australian economic calendar this week includes the Australia March jobs data with the forecast at 5.7%, with the previous month’s release at 5.8%, while China will unveil money-related data, which could also impact AUD and other currencies.

Elsewhere, in a T.V. interview, U.S. Federal Reserve Chair Jerome Powell said the U.S. economy is at an “inflection point” and that growth and job creation is poised to accelerate.

“What we’re seeing now is really an economy that seems to be much at an inflection point,” adding, “and that’s because of widespread vaccination and strong fiscal support, strong monetary policy support. We feel like we’re at a place where the economy’s about to start growing much more quickly and job creation coming in much more quickly. The outlook has brightened substantially. But that’s only if there isn’t another wave of Covid-19. The principal risk to our economy right now really is that the disease would spread again. It’s going to be smart if people can continue to socially distance and wear masks,” Powell said.

More than 183 million vaccines have been administered in the United States, according to the Centre for the Disease and Control and Prevention (CDC) data.

The downside expectations hold since posting a Japanese candlestick bearish outside range day now await confirmation.

A decisive break of US$0.7585 should trigger a further landslide for the AUD/USD pair and target the region of US$0.7530, with US$0.7350-70 seen beneath as a bullish foundation.

Any upside contest is expected to feel the heat from the bears (supply) from the region of US$0.7655-95 to US$0.7710-25 (60-day MA).

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