AUD/USD: bulls in control despite negative looking technicals

AUD/USD is oscillating around 0.7765 in Tokyo while domestic data releases have started to come out in Asia. AUD/USD has made a high of 0.7771 with a low of 0.7744 so far.

Data so far has come as:

• Building approvals (January) +17.1% m/m (vs. expected +5.0%).
• Australia (GDP input data) Q4 inventories: 0.2% q/q (expected 0.5%).
• Australia (GDP input data) Q4 profits: 2.2% q/q (expected 1.5%).
• Australia - ANZ job ads (February) -0.3% m/m (prior +6.2%).

Markets now await Chinese services that had a previous reading of 54.7 while otherwise, stay focused on headlines around the recent makings for a global trade war and what the implications will be for global trade and commodity prices. For the week ahead, the RBA and nonfarm payrolls will be the key focus.

AUD/USD levels

Valeria Bednarik, chief analyst at FXStreet explained that the pair managed to close the week above the 61.8% retracement of the December/January rally at 0.7740:

"The daily chart, as the pair is developing well below a bearish 20 DMA, while technical indicators maintain their bearish slopes well into negative territory and nearing oversold readings. 

Shorter term, and according to the 4 hours chart, the risk also leans towards the downside, as technical indicators remain within the negative territory, while a bearish 20 SMA caps advances, now acting as an immediate resistance at 0.7775."