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Australian Dollar Returned to Decline

2/28/2023 10:47 AM

The AUD/USD pair shows a slight decrease, returning to the "bearish" dynamics after an attempt to corrective growth the day before, due to the technical correction of the American currency, as well as the publication of mixed macroeconomic statistics in the US.

Durable Goods Orders in January fell by 4.5% after rising by 5.1% in the previous month, while analysts predicted the emergence of negative dynamics at the level of -4.0%. At the same time, Nondefense Capital Goods Orders excluding Aircraft added 0.8% after falling by 0.3% in December, while forecasts assumed zero dynamics.

Australian data recorded a strong 10.6% increase in Company Gross Operating Profits for the fourth quarter of 2022, following a decline of 11.5% in the previous period, while an increase of 1.5% was expected. The Australian macroeconomic statistics published today, in turn, could not provide significant support to the instrument. However, Retail Sales added 1.9% in January after declining 3.9% in the previous month, while analysts had expected an uptrend of 1.5%.

Investors continue to discuss the Australian government's initiative to ban residents of the country to use their pension savings ahead of time; in addition, it is proposed to adjust the tax policy for pension funds. The pension system currently accounts for 139.6% of the country's Gross Domestic Product (GDP) and is projected to grow to around 244.0% by 2061. Treasurer of Australia Jim Chalmers said seniority pensions are becoming an increasingly important source of capital in the national economy and help strengthen financial markets.

Bollinger Bands on the daily chart show a steady decline. The price range is expanding from below; however, it fails to catch the surge of the "bearish" sentiment at the moment. MACD is going down preserving a stable sell signal (located below the signal line). Stochastic has reached its lows and has tried to reverse upwards, indicating risks of oversold instrument in the ultra-short term.

Resistance levels: 0.6750, 0.6800, 0.6850, 0.6900. | Support levels: 0.6700, 0.6628, 0.6583, 0.6520.

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