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The Australian Currency is Trying to Seize the Initiative in the Pair

3/1/2023 12:00 PM

Despite the poor macroeconomic reporting, the AUD/USD pair is correcting around 0.6748 against the US dollar’s correction.

Thus, the gross domestic product (GDP) of Australia in the fourth quarter of 2022 added only 0.5%, below the expected growth of 0.8%, which led to a slowdown in the annual rate to 2.7% from 5.9% earlier, as the analysts expected. They believe that despite the ongoing slowdown, there is no talk of a recession yet. The consumer price index fell to 7.4% from 8.4% earlier, supporting the national currency.

The dollar fell below 105.000 in the USD Index yesterday and is now trading at 104.800. Investors are disappointed by the US Conference Board Consumer Confidence Index, which dropped to 102.9 from 106.0 earlier. This indicator has a significant impact on investment opinion and quite accurately reflects consumer demand, which is expected to continue to decline after the January growth.

On the daily chart, the trading instrument is moving below the support line of a wide ascending corridor with dynamic boundaries 0.7250–0.6900, slowing down the decline against the backdrop of a local correction.

Technical indicators maintain a stable sell signal: fast EMAs on the Alligator indicator are below the signal line, and the AO histogram is forming downward bars in the sell zone.

Resistance levels: 0.6800, 0.6980. | Support levels: 0.6690, 0.6500.

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