Looking at the benchmark AUD/USD currency exchange rate on the above four (4) hour price action chart, the sentiment and commodity linked Australian dollar (AUD) closed on Wednesday down about half (0.5) percent on the back of general U.S. dollar (USD) buying.
The Australian dollar is trading back below 0.7750 as price action trades in a newly formed pennant chart pattern. The AUD/USD Forex market has been forming a number of lower highs and higher lows since the start of 2021. Prices seem to be consolidating during the early Asian trade session.
Fundamentally, the Australian dollar seems to be focused on U.S. dollar fundamentals as well as global risk appetite. This brought the AUD/USD currency exchange rate lower on Wednesday. With that said Australian dollar traders are also eying commodity prices which could help contain the downside in this Forex market. These commodity prices include oil, gold, copper and iron ore.
Today, Forex traders will be looking at weekly U.S. first time unemployment claims as well as weekly continuing claims data from the U.S. Labor Department. Federal Reserve Board Chair Jerome Powell is also speaking today. On Friday, this Forex market will eye American monthly industrial production and January University of Michigan consumer sentiment.
Daily Australian Dollar Technical Analysis (AUD/USD)
Looking at price action on the above four (4) hour price chart, the AUD/USD Forex market is consolidating in the above mentioned pennant chart pattern. On the downside, initial support lines up at the rising trend line in play since 28 December.
A daily close below this trend line opens the door to challenge the 21 hour simple moving average at 0.7650.
On the upside, if the AUD/USD Forex market breaks above the pennant chart pattern opens the door to challenge Friday’s high price level at 0.78. The recent 2021 yearly high price point at 0.7820 would then come into play.