AUD/USD: under pressure on strong dollar, awaiting Chinese data

Currently, AUD/USD is trading at 0.7645, up 0.05% on the day, having posted a daily high at 0.7650 and low at 0.7639.

AUD/USD dropped following the dollar's late advance at the end of the US session breaking up to test 100.50 in the DXY. Yields also made it to ... on the back of further Fed speakers advocating further hikes fo 2017 to help contain inflation pressures. Dudley also suggested that U.S. fiscal policy will become more stimulative. We now await the Chinese manufacturing data as the next major catalyst for the Aussie. This data is expected to have advanced from February readings and could support AUD/USD that is currently under pressure.

Gold dropping hard to $1,241.49, testing the key ascending trend line support

AUD/USD has otherwise been in a strong recovery from the 0.7580's until 0.7680 resistance overnight met on the back of strong Q4 US GDP beating expectations of 1.9% and printing 2.1%. A better risk-off tone supported a rise in the Aussie recently, along with markets pricing in the RBA on hold for 2017 and possibly 2018. Westpac’s base case is that the cash rate remains at 1.5% throughout both 2017 and 2018. "We see risks to this view skewed more to a rate cut than to a hike, as growth in 2018 could disappoint. Markets price only a tiny risk of a cut by September 2017 and then toy with the idea of a rate rise by year-end (10-15% chance)."

AUD/USD levels

AUD/USD analysis: eyeing Chinese PMI figures

Valeria Bednarik, chief analyst at FXStreet explained that the 4 hours chart shows that the price remains above a horizontal 200 EMA." Technical indicators have turned south within positive territory, increasing odds of a bearish extension but not confirming it, as it would take a break below 0.7570 to confirm a steeper and more sustainable decline."