Aussie gaining more than 1.2% weekly
The Australian dollar is up more than 0.7% this week so far and 1.2% weekly base. However, AUDUSD needs to breathe above 0.7285 to change the trend.
The Australian dollar is usually so sensitive to risk sentiment, but the Australian dollar is up this week, ignoring the risk sentiment, even if at the beginning of the week it was losing ground. In the past days, the Aussie gaining level increased mostly because of positive economic data. Thursday Australian employment data showed great progress in the labor market with 12.9K Employment Change in January, while Participation Rate also was 66.2%. On the geopolitical front, we know that the US and Russian foreign ministers, due to meet next week, and this event increase the hopes on the possible political solution. On the other hand, we also had a report that Russia planning to test the readiness of its nuclear and ballistic missiles on Saturday. Therefore risk-of mode can keep the pressure on Aussie in general.
From the technical point of view, pairing still has a neutral-downwards shape. While we have strong resistance at 0.7285, the pivot point at 0.7200 is the important psychological level. On the flip side, 50-DMA at 0.7170 is the first support. A clear breach under this level would send the pair tumbling to February 14 low at 0.7085, and then February 4 low at 0.7051.
