A series of anti-risk news updates dragged AUD/USD below its 1-hour moving averages.
Can China’s data releases pull the comdoll back up?
Before moving on, ICYMI, I’ve listed the potential economic catalysts that you need to watch out for this week. Check them out before you place your first trades today!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
Shares gain as oil slips on hopes for Ukraine progress
Russian strike on base brings Ukraine war close to NATO’s border
US officials: Russia has requested military and economic assistance from China
Iran attacks Iraq’s Erbil with missiles in warning to U.S., allies
Shenzhen imposes a lockdown and Shanghai restricts nonessential travel as China’s new coronavirus cases jump
Gold down, U.S. treasury yields up as investors await interest rate hike
Germany February wholesale price index 1.7% vs 2.3% in January
Upcoming Potential Catalysts on the Forex Economic Calendar:
France’s trade balance at 7:45 am GMT
U.K.’s CB leading index at 1:30 pm GMT
BusinessNZ services index at 9:30 pm GMT
RBA’s meeting minutes at 12:30 am GMT (Mar 15)
China’s retail sales at 2:00 am GMT (Mar 15)
China’s industrial production at 2:00 am GMT (Mar 15)
China’s fixed asset investment (ytd/y) at 2:00 am GMT (Mar 15)
China’s unemployment rate at 2:00 am GMT (Mar 15)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: AUD/USD
In case you missed it, the combination of Iran hitting Iraq with missiles; Russia possibly asking China for military assistance, and China imposing fresh coronavirus-related restrictions in Shanghai and Shenzhen weighed on high-yielding bets like AUD earlier today.
Luckily for market bulls, Asian equities were able to limit their losses thanks to optimism that this week’s Russia-Ukraine peace talks would make some progress.
Will today’s market themes and tomorrow’s Chinese data dump support AUD?
Risk aversion has been weighing on AUD/USD since last week and today Aussie bears dragged AUD down to the .7250 area. That’s below the 100 and 200 SMAs on the 1-hour time frame!
If today’s markets focus on peace talks optimism, or if China’s top-tier data releases point to future global economic growth, then AUD/USD could retrace back up to areas of interest near .7300 or .7350.
But if risk aversion persists, or if traders buy more USD ahead of the Fed’s interest rate hike, then AUD/USD could see new March lows in the next trading sessions.
Watch AUD/USD’s 1-hour chart closely!
