The AUD/USD pair seesawed between tepid gains/minor losses heading into the European session and was last seen trading around mid-0.7300s, nearly unchanged for the day.

Worries about the worsening situation in Ukraine continued weighing on investors' sentiment, which was evident from the prevalent cautious mood in the financial markets. This, in turn, exerted some downward pressure on the perceived riskier aussie during the early part of trading on Friday. That said, subdued US dollar demand assisted the AUD/USD pair to attract some buying near the 0.7330-0.7325 region.

AUD/USD remains on the buyer’s radar as it stays above the key moving averages amid the bullish MACD signals.

That said, the bulls eye another battle with a downward sloping trend line from late February 2021, around 0.7420.

Meanwhile, the 200-DMA guards the quote’s immediate downside around 0.7315, a break of which will direct AUD/USD sellers toward the 100-DMA level of 0.7230.

However, a 10-week-old rising trend line, near 0.7455 by the press time, will challenge the AUD/USD bulls afterward.

Should the AUD/USD prices remain firmer above 0.7455, a run-up towards the October 2020 peak near 0.7560 can’t be ruled out.

In a case where the pair bears keep reins past 0.7230, a south-run towards September 2021 low near 0.7170 becomes imminent.

The RBA Governor Philip Lowe on Wednesday said a move was plausible later in the year, but he also said Australia had more scope to wait than some other developed nations. Markets are still wagering on a rise as early as June and have two hikes to 0.5% priced in by August.

Aussie to be Long Term Bullish after an Expected Bearish Drop

Mar 11 2022