- AUD/USD slumped overnight as the bid tone around the US dollar strengthened after the two-year Treasury yield jumped to its highest level since 2009.
- The pair continues to extend slide in the Asian session today on poor China services PMI data.
- China Caixin China Services PMI printed at 52.6 in February down from 53.1 in the previous month.
- Focus now remains on the US ISM services PMI and a slew of Fed speaks, including Yellen’s speech, which will provide fresh insights on the US interest rates outlook.
- Data overnight showed US jobless claims fell to 44-year low pointing to further tightening of the labor market.
- With the labour market already near full employment data is fanning the discussion of a March rate hike.
- The US dollar could extend gains further if Fed chair Yellen provides hawkish comments on Mach rate hike with certainty.
- Bears eye 200-DMA at 0.7523. Violation there could see test of 0.7450 levels.
Call update: Our previous call (http://www.econotimes.com/FxWirePro-AUD-USD-depressed-below-20-DMA-dismal-Australia-trade-balance-dents-Aussie-568561) has hit all targets.
Recommendation: Book partial profits, lower trailing stop to 0.7625, hold for 0.7523
FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -73.8366 (Bearish), while Hourly USD Spot Index was at 126.814 (Highly bullish) at 0245 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
