- The AUD/USD pair opens at 0.6679 and hits an intraday low of 0.6601 before settling at 0.6606.
- Concern over Credit Suisse’s woes increases investor risk aversion.
- Investors are awaiting Australian job change and employment rate data.
He AUD/USD is facing selling pressure on Wednesday as investors turned risk averse amid growing concern over recent catastrophic events involving Credit Suisse just after the collapse of Silicon Valley Bank (SVB).
the aussie it marks an intraday low of 0.6601 before settling at 0.6606, down 1.09% on Wednesday to press time.
The Credit Suisse predicament and expectations of a 25 basis point (bp) rise -albeit lower than previously expected- by the Federal Reserve (Fed) in March continue to drive the US dollar.
Recent unsatisfactory US macroeconomic reports, including a 0.1% decline in the Producer Price Index (PPI) for February and a lower-than-expected core PPI rate, have not had a negative impact on the dollar.
US Retail Sales also fell 0.4% in February, below the previous month’s 3.2% rise and the 0.3% decline expected. In addition, the New York Fed’s Empire State Manufacturing Index falls sharply to -24.6, below the expected decline to -8 from -5.8 previously.
However, concerns over a broader financial crisis continue to support the US dollar with safe-haven demand. Additionally, the Reserve Bank of Australia (RBA) Rate Dovish, which indicates that it may be nearing the end of its rate hike cycle, indicates that the AUD/USD pair is likely to trend lower.
Main economic events:
The evolution of employment inAustralia (February) and the Rate Unemployment (February), which will be published at 00:30 GMT, are the key data for Thursday.
In addition, on Thursday at 12:30 GMT the Initial Petitions for Employment in the United States.
Technical perspective:
From a technical perspective, the pair AUD/USD remains in a downtrend, with the 20 daily SMA in 0.6747 acting as a significant resistance level.
Today’s high coincided with a main trend line linking the highs of the downtrend in prices since early February. The intraday drop that followed the retest of the trend line suggests that the next move lower in the downtrend may be unfolding. The March 10 lows are the next downside target at 0.6565. There is also a key support level at 0.6580.
The SMA of 50 daily at 0.6881 it also increases the bearish pressure. The RSI (14) journal is currently in 36,970which suggests that the pair is close to entering oversold territory, and there is a higher risk that the AUD/USD price will consolidate before taking further losses.
The pair’s intraday high at 0.6712 constitutes immediate resistance, followed by the 38.2% Fibonacci level at 0.6671, the daily pivot point at 0.6670 and resistance levels at 0.6709, 0.6735 and 0.6773.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
