- Retreat in commodity prices weakens AUD/USD.
- The dollar with mixed results, loses ground against EUR and GBP, but recovers against those linked to commodities.
- Pair remains in bullish channel, but correction risks increase.
The AUD/USD extended the bearish correction and fell to the 0.7350 zone, where it is trading. AUD/USD had previously reached as high as 0.7440, the highest level since early November.
The decline occurred despite a recovery in the stock markets. Stock prices trimmed losses and at the same time, commodities erased much of the daily gains. The latter weighed more on the Aussie than the improved mood in the markets.
The gold It went from trading above $2,000 an ounce to falling as low as $1,960. Something similar happened with the silver. The Petroleum it is almost unchanged, after having been trading with a 9% gain on the day. Although the background trend remains bullish, high volatility prevails in commodities.
AUD/USD is thus in negative territory for the day, falling for the first time after rising in the previous three sessions. The pair’s rally is giving a sign of exhaustion. The uptrend is still holding firm. The 200 day moving average at 0.7320 is the first major support.
If momentum is regained, a rally above 0.7380 could give AUD/USD time to retest 0.7400.
Source: Fx Street