The Aussie dollar is under pressure in Asia as AUDUSD dips below 0.79. Will it remain that way? Find out here on the 7 February AUDUSD Technical Analysis.
7 February, GKFX – The AUD/USD dipped to 0.7889 in Asia even though the Aussie 10-year bond yield jumped by 5.5 basis points (bps).
The spread or the difference between the 10-year Australian government bond yield and the 10-year US Treasury yield stands at 5 basis points. So far, the curve has narrowly avoided inversion (negative turn). That said, the spread risks turning negative as the Aussie data released this week has disappointed expectations.
Moreover, a negative AU-US 10-year yield spread would dampen AUD’s appeal as a high yielding currency.
As of writing, the spot is trading at 0.7890. The S&P 500 futures are down 0.38 percent, indicating the relief rally could be short-lived. So, the Aussie dollar may remain under pressure.
7 February AUDUSD Technical Analysis
A break below 0.7883 (38.2% Fib R of Dec-Jan rally) would open doors for 0.7835 (previous day’s low) and 0.78 (zero levels). On the higher side, breach of resistance at 0.7908 (session high) could yield test of 0.7927 (5-day MA) and 0.7956 (Jan. 23 low).
This article 7 February AUDUSD Technical Analysis 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.