- AUD/USD seesaws around seven-month high, fades upside momentum after a five-day winning streak. - Mixed details of Australia’s Q4 Export-Import Price Index, PPI probe Aussie pair buyers. - Cautious mood ahead of the Fed’s preferred inflation also acts as an upside filter. - RBA versus Fed drama, easing economic slowdown fears underpin bullish bias.
Comment
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If Asia opens on the offer then a downside extension to test the previous day's lows near 0.7080 and then 0.7070 is eyed. There are risks of a move towards 0.7050 for the initial balance for the week. The daily average true range is around 80 pips, so a move much higher than 0.7130 would not be expected from a bearish perspective.