AUD/USD rallies to upper edge of short-term downtrend channel

FXstreet.com (Barcelona) - The AUD/USD cross rallied hard Thursday with the rest of risk assets – despite the short-covering rally in the US Dollar that took place.

AUD/USD traders to react to US data and news Friday

Poor Australian data Thursday was overshadowed by an unwinding of the “risk-off” trade that took place following news that the Republicans in Washington were putting forth a plan to extend the debt ceiling for six weeks to give the budget negotiations a chance to play out. Interestingly – and disturbingly – the Republican proposal looks like it may have fallen on deaf ears at the Oval Office.

AUD/USD traders will obviously be reacting to all of the D.C. nonsense. However, they will also have to trade around the US PPI, US retail sales, US University of Michigan Consumer Sentiment and US Business Inventories

Technical outlook for AUD/USD

The AUD/USD faces resistance at the three-day downtrend line at 0.9465. That level is followed up by Tuesday’s high of 0.9483. First support comes in at 0.9417 and if it fails the next possible support is 0.9389.

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