The Aussie pair spent Wednesday restricted to a 30 pips’ range, closing the day unchanged around 0.7730. Bulls were unconvinced by Australian data, as the January Westpac Consumer Confidence improved from -4.5% to 1.9%, much better than anticipated. The pair got stuck between the broad dollar’s weakness, and falling equities, which usually undermine the Australian Dollar’s demand.
In The Meantime, gold prices saw some intraday spikes driven by dollar’s demand or the lack of it but is ending the day little changed around $1,842 an ounce. Early on Thursday, Australia published their February Consumer Inflation Expectations, which was at the 3.7% from the previous reading at 3.4%.
The pair has lost its bullish muscle, but chances of a sharper decline seem limited. In the 4-hour chart, the pair is trading above all its moving averages, with the 20 SMA heading firmly higher above the longer ones. Technical indicators, though, withdrew more than the overbought readings, holding inside positive levels. The pair may accelerate lower on a break below 0.7710, the immediate support level.
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