While Australia won an exemption from Trump’s steel and aluminium tariffs, how is the AUDUSD pair trading? Learn this from the 23 March AUDUSD Technical Outlook, as Australia Exempted From Trump Tariffs.
22 March, HotForex – AUDJPY is the biggest loser out of the main dollar pairings and cross rates yesterday, with cross down 1.3%. The move reflects part Aussie underperformance and part yen outperformance, as risk aversion continued to course through global markets on the realizing threat of Trumpian trade wars.
The cross is widely considered a forex market risk appetite barometer for this reason and has declined by nearly 9% since early-January levels, making a 16-month low earlier at 80.49.
Australia Won An Exemption
While Australia won an exemption from Trump’s steel and aluminium tariffs, the country will be exposed to U.S. tariffs via Trump’s action against China, which is the antipodean country’s biggest client for its vast natural resource exports, and more broadly to any global tit-for-tat trade way. The minutes from the RBA’s early-March board meeting showed there was some concern about a deterioration in Australia’s terms of trade.
Meanwhile, the Japanese inflation data today may have given the yen an added bid, with the BoJ-watched core CPI reading rising to a rate of 1.0% y/y in February from 0.9% in the month prior, although the rate is still well off the central bank’s 2% target.
23 March AUDUSD Technical Outlook
AUDUSD closed yesterday down by 0.7% on the day presently, returning focus on three-month low. However, the shorter timeframe of the pair, since early today, presents a rebound from 3-months lows, with nearly 30 pips up. Hence despite the fact that pair is in a continues downtrend since January 31, it seems that we could benefit intra-day with some possible corrections to the upside.
Hence in the hourly chart, the pair is traded for 7 consecutive session within the upper Bollinger Bands pattern, while on London open, it broke the 50-period EMA but also the latest upper fractal, suggesting positive short-term momentum. The momentum indicators present some positive signs with RSI crossing slightly above neutral Zone, while MACD is neutral.
However, we noticed that in the 30 minutes chart, both indicators look positive with RSI at 62 while MACD turned positive. Hence a Long Position was triggered on the confluence of the PP level and the break of the fractal at 0.7720. Targets were set at yesterdays support area at 0.7742 and at R1 at 0.7757. Support comes at the round level, 0.7700 which is also the latest swing low.
This article about 23 March AUDUSD Technical Outlook was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
All information provided gathered from reputable sources. Any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. We assume no liability for any loss arising from any investment made based on the information provided in this communication.