- Australian dollar rises along with commodity prices, grows 0.51%.
- The Russia-Ukraine talks, stalled with no progress, dampened the market mood.
- AUD/USD Technical Outlook: Remains higher, buoyed by commodity prices and the 200-DAY DMA breakout higher.
The AUD/USD It is advancing for the second day in a row, after Wednesday’s sudden shift in sentiment amid no concrete news on a ceasefire or truce in the Russia-Ukraine conflict, as hostilities continue for the 16th day in a row. At time of writing, AUD/USD is trading at 0.7338, modestly above Wednesday’s high.
Risk aversion returned on Thursday as fights between Russia and Ukraine continued to attract attention. As reported by both sides, the Ukraine-Russia talks went nowhere as both countries stood firm on each of their stances. However, there is still hope for a meeting between Putin and Zelenskyy, but Russian Foreign Minister Lavrov added that they would need further preparations.
Meanwhile, the US economic calendar presented the Consumer Price Index (CPI) for February, which reached 7.9% annually, while the so-called core CPI that excludes volatile elements increased by 6.4% annually, both figures in line with expectations. “Last month’s CPI data does not fully capture the surge in oil prices following the Russian invasion of Ukraine on February 24, when prices soared more than 30%,” according to Reuters.
Earlier in the Asian session, Australia reported that consumer inflation expectations for March increased from 4.6% to 4.9%, while building permits contracted sharply, from 8.2% to -27.9%.
AUD/USD overnight ranged between the 0.7300-30 zone, but as commodities rallied, the AUD pushed ahead, jumping to daily highs around the open of the American session.
AUD/USD Price Forecast: Technical Outlook
AUD/USD has a bullish bias, although it is approaching solid resistance around 0.7370, Nov 15, 2021 high. On Thursday, the pair jumped from the 200-day moving average (DMA), a bullish sign, although it remains in sight, close to price, which is something to watch out for. Additionally, Thursday’s daily low touched a ten-month downtrend line, previous support/resistance around 0.7287, causing a jump in price as buying pressure arose.
That said, the first resistance for the AUD/USD would be 0.7370. A break of the latter would expose 0.7400, followed immediately by the yearly high at 0.7441 and the daily high on March 7.
Additional technical levels
Source: Fx Street
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