FxWirePro: AUD/USD struggles to extend previous session's gains, Aussie under pressure after FinMin signals economic hardships

Chart - Courtesy Trading View 

Spot Analysis:

AUD/USD was trading 0.16% lower on the day at 0.6932 at around 05:30 GMT

Previous Week's High/ Low: 0.6995/ 0.6869

Previous Session's High/ Low: 0.6957/ 0.6888

Fundamental Overview:

Australian Finance Minister (FinMin) Katy Gallagher warned of economic challenges for the Pacific major.

Further, Australia's Treasurer Jim Chalmers also highlighted fears of higher inflation while expecting a 7.0% figure and agreeing with a forecast by the central bank.

During the weekend, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said, “Further negative shocks would inevitably make US economic situation ‘more difficult’.” 

The IMF revised down US 2022 GDP forecasts to 2.9% versus the 3.7% predicted earlier. DXY grinds lower, but AUD/USD fails to benefit from US dollar weakness.

Technical Analysis:

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

- Momentum is strongly bearish, volatility is high and rising

- 'Death Cross' on the daily charts keeps bias lower

- GMMA indicator shows major and minor trend are bearish

Major Support and Resistance Levels:

Support - 0.6794 (Lower BB), Resistance - 0.7009 (21-EMA)

Summary: AUD/USD trades with a bearish bias. Scope for test of trendline support at 0.6855.