AUDUSD, H1, H4 & Daily
The Australian Dollar remains under pressure and is sharply weaker during the European session. The main drivers being the combo of disappointing Australian GDP data, which came in at 0.2% q/q in Q4, below the median forecast for 0.3% growth, a slowing Australian housing market and a backdrop of flagging global stock markets and a slowing.
AUDJPY has dropped sharply, by well over 0.5%, the cross has printed a two-week low at 78.54 and currently trades blow the 20-day moving average. The move weighed on USDJPY, which drifted to a two-day low at 111.72, and has overwhelmed remarks from BoJ dove Harada, who argued for more monetary easing “without delay.” Also in the mix has been news that North Korea is rebuilding a rocket launch site, according to satellite imaginary, as detailed by 38 North¹, which seems to be an ominous development in the wake of the failed Trump-Kim summit.
AUDUSD on the EMA Crossing Strategy (H1 time frame) trigger lower at 01:00 GMT, following the GDP disappointment, at 0.7060 and ran unhindered to T1 at 0.7048 and T2 at 0.7032 by 06:00 for a net gain of 28 pips. The pair remains weak and in line with the higher time frames. The H4 time frame triggered lower at 14:00 last Wednesday (February 27) at 0.7155, the Daily time also triggered lower on the close of the daily candle last Wednesday at 0.7136 and breaching the key 20-day moving average and 23.6 Fibonacci level. T1 at 0.7075 sat below the 38.6 fib level and next resistance sits at the 50.0 Fibonacci level. T2 is below the key psychological 0.7000 level and also coincides with the 2019 lows (save the flash crash on January 2) at 0.6984.
¹https://www.38north.org/2019/03/sohae030519/
Stuart Cowell
Head Market Analyst
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