The AUD/USD pair has been extending Thursday’s reversal from the 0.75 handle, currently trading at 0.7415.
After reaching the peak of 0.7503 on Thursday, the pair ended its upward trajectory by falling to 0.7440 on downbeat Chinese inflation data. Today, the major extended its downward movement and is currently consolidating around 0.7415.
Being Australia’s most important trading partner, a slew of Chinese economic data to be released over the weekend, could further affect commodity currencies, including the Aussie.
A subsequent break below 0.7387, could lead the pair down to 0.7353 and 0.7317 respectively.
On the flip side, in the event where the price breaks above 0.7466, the pair could escalate up to 0.7503 and 0.7564 in extension.
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.