AUDUSD Technical Forecast


A look at the 5 January AUDUSD Technical Forecast shows that the pair extends dismal trade data-led corrective slide from 2-1/2 month tops. Dig in for more.

5 January, GKFXHaving refreshed 2-1/2 month tops, the AUD/USD pair turned lower and has now retreated back below mid-0.7800s.

Key Quotes

  •  Aussie weighed down by big miss on trade balance data.

  •  An uptick in USTs adds to the downward pressure.

  •  Focus remains on US monthly jobs report.

The Australian Dollar came under some selling pressure and lost some ground following a big miss on trade balance data, showing a deficit of A$628 million for November as against a surplus of A$915 million expected and A$105 million surpluses reported in the previous month.

Adding to this, a modest uptick in the US Treasury bond yields, which was seen lending some support to the US Dollar, further prompted profit-taking to move around higher-yielding currencies – like the Aussie.

Even a subdued action around commodity space did little to lend any support, with long-unwinding trade playing a dominant role during the Asian session on the last trading day of the week.

Investors’ focus on Friday would remain glued to the release of keenly watched nonfarm payrolls data from the US, which along with the ISM nonmanufacturing PMI would influence the USD price dynamics and eventually provide fresh impetus.

5 January AUDUSD Technical Forecast

A follow-through weakness is likely to get extended towards 0.7815 level, below which the pair is likely to break through the 0.7800 handle and head towards testing 100-day SMA support near the 0.7780-75 region.

On the upside, the 0.7865-70 region now seems to act as an immediate resistance, which if cleared should assist the pair to build on its bullish momentum and aim towards reclaiming the 0.7900 handle.

Disclaimer

This article “5 January AUDUSD Technical Forecast ” was written by analysts at GKFX. The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

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