FxWirePro: AUD/USD poised for further weakness, on track to test 61.8% Fib retracement

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.21% lower on the day at 0.6575 at around 04:30 GMT.

Previous Week's High/ Low: 0.6783/ 0.6694

Previous Session's High/ Low:  0.6636/ 0.6576

Fundamental Overview:

The Australian dollar under pressure as optimism linked with China’s economic recovery is fading.

Further, geopolitical fears surrounding China and the US, mainly due to Taiwan, as well as fears emanating from Russia, exert downside pressure on the antipodean.

Dovish rhetoric from Reserve Bank of Australia (RBA) Governor Philip Lowe adds to the downside bias. 

The RBA is considering the current monetary policy is restrictive enough to bring down the sticky inflation.

Data from US on Thursday showed Initial Jobless Claims marked the biggest jump since January by rising to 211K for the week ended on March 03 versus 195K expected and 190K prior.

Focus now turns to the key nonfarm payrolls report later on Friday, for clues on the Fed's next steps for monetary policy.

Markets expect US nonfarm payrolls likely increased by 205,000 jobs in February after surging by 517,000 in January.

Technical Analysis:

- After a brief consolidation with back-to-back Gravestone Dojis, the pair has resumed weakness

- Momentum is strongly bearish, Stochs and RSI are well in oversold territories

- Price action is below major moving averages which are trending lower

- GMMA indicator shows major and minor trend are bearish

Major Support and Resistance Levels:

Support - 0.6547 (61.8% Fib), Resistance - 0.6613 (5-DMA)

Summary: AUD/USD trades with a bearish technical bias. Bears on track to test 61.8% Fib support at 0.6547.