The AUD/USD pair is trading in the red at 0.6465 at the time of writing and it seems very heavy in the short term as the Dollar Index is bullish. The price action showed exhausted buyers, so a new sell-off could be natural.
Fundamentally, the Australian Private Sector Credit came in line with expectations, while Private Capital Expenditure beat expectations. Earlier, the US reported mixed data as well. Still, the greenback received a helping hand from the Unemployment Claims, Chicago PMI, Personal Spending, and Core PCE Price Index data.
Tomorrow, the US is to release high-impact data. Better than expected figures should force the USD to dominate the currency market.
AUD/USD New Sell-Off!
Technically, the AUD/USD pair failed to stay above the 23.6% (0.6489) retracement level indicating exhausted buyers. Now, it challenges the weekly R1 (0.6470) and the former low of 0.6462.
The false breakouts through the 23.6% retracement level and failing to reach and retest the descending pitchfork's upper median line (uml) signals strong selling pressure.
AUD/USD Forecast!
A bearish closure below 0.6462 activates a deeper drop towards the weekly pivot point of 0.6420. This is seen as a selling signal.
