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AUD/USD Struggling for upside traction...

Data released on Monday increased the risk that Australian economic growth may have fallen in the December quarter
Information on larger components of the economy will be released on Tuesday
It’s hard to be bullish AUD based on the recent domestic economic performance
Risks are growing that Australia’s economy went backwards in the December quarter, keeping alive the prospect of the Reserve Bank of Australia bringing forward rate cuts following a string of weak domestic economic data last week. AUD/USD therefore remains a sell-on-rallies prospect.

While it didn’t generate much of a reaction in AUD/USD, Monday’s data deluge did nothing to bolster the bullish case for AUD, be it against the USD or other major currencies. It remains soggy on the charts, struggling along with most other Asian currencies.

Having popped higher on Friday on the back of softness in the US dollar on declining US Treasury yields, AUD/USD was rejected again above .6530 on during the Asian session, continuing the pattern seen on Thursday and Friday. It’s inability to find traction suggests its near-term path may be lower.

Those considering shorts could sell the pair here, with a stop above .6530, targeting a push towards .6490 where AUD/USD attracted bids last week on three occasions. Below, potential uptrend support around .6480 and the double-bottom at .6447 are the next levels to watch.

[ATTACH=full]172180[/ATTACH]

<blockquote data-quote="Bailxtrader" data-source="post: 1268802" data-attributes="member: 89756">AUD/USD&nbsp; Struggling for upside traction...Data released on Monday increased the risk that Australian economic growth may have fallen in the December quarter <ul>
<li data-xf-list-type="ul">Information on larger components of the economy will be released on Tuesday </li>
<li data-xf-list-type="ul">It’s hard to be bullish AUD based on the recent domestic economic performance</li>
</ul>Risks are growing that Australia’s economy went backwards in the December quarter, keeping alive the prospect of the Reserve Bank of Australia bringing forward rate cuts following a string of weak <a href="https://www.cityindex.com/en-au/news-and-analysis/aud-usd-fuel-driving-us-dollar-rally-may-be-nearing-exhaustion-point/" target="_blank">domestic economic data</a> last week. AUD/USD therefore remains a sell-on-rallies prospect. While it didn’t generate much of a reaction in AUD/USD, Monday’s data deluge did nothing to bolster the bullish case for AUD, be it against the USD or other major currencies. It remains soggy on the charts, struggling along with most other Asian currencies. Having popped higher on Friday on the back of softness in the US dollar on declining US Treasury yields, AUD/USD was rejected again above .6530 on during the Asian session, continuing the pattern seen on Thursday and Friday. It’s inability to find traction suggests its near-term path may be lower.Those considering shorts could sell the pair here, with a stop above .6530, targeting a push towards .6490 where AUD/USD attracted bids last week on three occasions. Below, potential uptrend support around .6480 and the double-bottom at .6447 are the next levels to watch.[ATTACH=full]172180[/ATTACH]</blockquote>

[QUOTE="Bailxtrader, post: 1268802, member: 89756"] [B]AUD/USD Struggling for upside traction...[/B] Data released on Monday increased the risk that Australian economic growth may have fallen in the December quarter [LIST] [*]Information on larger components of the economy will be released on Tuesday [*]It’s hard to be bullish AUD based on the recent domestic economic performance [/LIST] Risks are growing that Australia’s economy went backwards in the December quarter, keeping alive the prospect of the Reserve Bank of Australia bringing forward rate cuts following a string of weak [URL='https://www.cityindex.com/en-au/news-and-analysis/aud-usd-fuel-driving-us-dollar-rally-may-be-nearing-exhaustion-point/']domestic economic data[/URL] last week. AUD/USD therefore remains a sell-on-rallies prospect. While it didn’t generate much of a reaction in AUD/USD, Monday’s data deluge did nothing to bolster the bullish case for AUD, be it against the USD or other major currencies. It remains soggy on the charts, struggling along with most other Asian currencies. Having popped higher on Friday on the back of softness in the US dollar on declining US Treasury yields, AUD/USD was rejected again above .6530 on during the Asian session, continuing the pattern seen on Thursday and Friday. It’s inability to find traction suggests its near-term path may be lower. Those considering shorts could sell the pair here, with a stop above .6530, targeting a push towards .6490 where AUD/USD attracted bids last week on three occasions. Below, potential uptrend support around .6480 and the double-bottom at .6447 are the next levels to watch. [ATTACH type="full"]172180[/ATTACH] [/QUOTE]

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